Both indices, Nifty and Sensex saw a bloodbath as they opened for trade on 25th July 2024. While Sensex was down by over 500 points, inching down the 80,000 mark to trade at 79,616.53 points. Nifty was also down by 0.72% trading at 24,237.65 points.
All broad market indices opened the day in red, except for India VIX, which inched up by 1.93% in early trade. As for sectoral indices, all except for media opened in red, with bank, financial services, metal and private banks dipped over 1% each in early trade.
SBI Life, Tata Motors, Larsen and Toubro, Nestle India and HDFC bank took early gains in trade, while Axis bank, Hindalco, Shri Ram Finance, Tata Steel and Coal India were amongst the leading laggards.
Aditya Gaggar, director of Progressive Shares noted that the level of 24,200 will remains a crucial support and an early indication from GIFT Nifty suggests a tepid opening of the Indian equities around the similar levels. "A sustainable move below the mentioned support level will pull the index further to 24,000. On the flip side, 24,450 will act as a stiff hurdle. Bank Nifty is likely to remain in the grip of bears. Among the sectors, FMCG, IT and pharma are likely to provide some support to the index while high beta segments such as realty and metal will add to the pressure", he continued.
Shrikant Chouhan, Head Equity Research highlighted that from a technical standpoint, there is selling pressure at higher levels. However, the medium-term market structure remains positive, which could offer an opportunity to buy on dips. "We anticipate that the 20-day SMA (simple moving average) at 24,300/79,700 would act as a key level for the day's trend determination. If the market moves above 24,300/79,700, it can rise to 24,500-24,650/80,500-80,750. Conversely, breaking below the 20-day SMA or 24,300/79,700 could lead to increased selling pressure, possibly causing the market to test levels around 24,150-24,100/79,300-79,000. Given that it's the day of the monthly expiry of F&O contracts, there could be a rebound from lower levels. Our strategy is to consider buying between 24,200 and 24,100 levels, with a stop loss at 24,000", explained Chouhan.
