Dalal Street ends trading week in red despite select gains

The stock market closed the week on a disappointing note as both key indices, Sensex and Nifty, failed to make gains, ending in the red territory amidst a mix of market sentiments. At the closing bell, Sensex was down 760.89 points, concluding the week at 65,415.69. Simultaneously, Nifty also registered a decline of 180.55 points, finishing the week at 19,541.45.

Market analysts observed a total of 16 advances and 34 declines among the Nifty-listed firms.

Notable gainers among the Nifty companies included Kotak Bank, IndusInd Bank, TCS, SBI Life, and HDFC Bank.

Conversely, ITC, Tata Steel, DIVI's Lab, JSW Steel, and Hindustan Unilever were the top losers at the week's end.

Varun Aggarwal, founder and managing director, Profit Idea, said, "Nifty closed 1 per cent down on weekly basis. Market continues to consolidate between 19500-19800 levels. Bulls defended 19500 levels on weekly basis. Heavy put writing for 19500 levels for October series. If nifty goes below 19500, weakness will come. As put writer will cover up the positions".

"As per the recent price setup, buying can be seen at support but upside remains capped. On global front US market fell by 1per cent after comments from Federal Reserve President indicated that interest rates are likely to stay higher for longer and set inflation target to 2 per cent. Focus on sugar stocks as fall in domestic sugar inventory and expectation of increase domestic sugar price on ahead of festival session will be positive for sugar stock", said Aggarwal.

The Nifty index experienced a 1 percent decline over the week, reflecting the ongoing market consolidation within the 19,500-19,800 range. Investors were closely watching the 19,500 level, which was defended by bulls on a weekly basis. Heavy put writing for the 19,500 levels in the October series indicated a strong support zone. Experts warned that if Nifty drops below 19,500, it might trigger weakness as put writers might unwind their positions.

Globally, the US market faced a 1% drop after comments from the Federal Reserve President hinted at prolonged higher interest rates and a set inflation target of 2%, raising concerns among investors.

Market focus shifted towards sugar stocks due to a fall in domestic sugar inventory and expectations of increased domestic sugar prices ahead of the festival season. Analysts predicted positive movements for sugar stocks in this context.

Additionally, investors remained vigilant about escalating geopolitical tensions in the Gulf region, which could impact the market sentiment in the coming weeks.

"Going ahead surging geo-political tension in the Gulf region will be watched closely. We remain bias on Indian Market for positive returns. Expect India to outperform the global peers. Positive on IT, Banking, Financial Services, Media, Metals, FMCG stocks. Nifty earnings are expected to be on higher side. Bullish biased risk defined income strategies can be opted for traders", Aggarwal said.

Despite the challenges, market experts expressed a positive bias towards the Indian market, expecting it to outperform its global counterparts. Sectors like IT, Banking, Financial Services, Media, Metals, and FMCG stocks were viewed favorably.

Market participants were urged to consider bullish biased risk-defined income strategies given the expected higher Nifty earnings.

Traders were advised to tread cautiously and explore strategic options amid the ongoing market volatility.