Stock market today: The Indian stock market resumed its downward march on Tuesday, 28 July, with the benchmarks ending slightly lower amid mixed global cues.
The Sensex closed 70 points, or 0.09%, lower at 76,765.92, while the Nifty 50 ended at 23,985.35, down 11 points, or 0.04%.
The mid and small-cap segments ended mixed. The Nifty Midcap 100 index climbed 0.08%, while the Smallcap 100 index declined 0.22%.
The market breadth tilted in favour of decliners as over 2,600 stocks declined compared to over 1,600 advancers on the BSE on Tuesday.
The stock market ended lower amid profit-taking after strong gains in the previous session, as uncertainties over the Middle East conflict continue to weigh on sentiment.
The US and Iran have halted strikes, and reports suggest some diplomatic efforts to end their conflict are on. Crude oil prices fell further to $85 per barrel.
Meanwhile, the Indian rupee climbed 12 paise to settle at 95.87 per dollar, provisional data showed.
As per news agency Reuters, US President Donald Trump will host Israeli Prime Minister Benjamin Netanyahu and Ukrainian President Volodymyr Zelenskiy on Tuesday, at a time when the Ukraine war and the Middle East conflict are at critical stages.
Apart from geopolitical developments, investors’ focus is also on the US Federal Reserve’s monetary policy decision, amid increased inflation risks driven by energy price volatility. The Fed’s policy outcome is due on 29 July.
“The respite in crude oil prices provided relief to markets by easing concerns over inflation and input cost pressures. However, investor sentiment remained cautious ahead of key central bank policy meetings this week, including those of the Fed, BoE, and BoJ,” noted Vinod Nair, Head of Research, Geojit Investments.
“Persistent volatility in energy markets and heightened geopolitical risks could keep global bond yields elevated this year. Nevertheless, expectations that major central banks will hold interest rates steady in their July policy meetings have offered some support to market sentiment,” Nair said.
Top Nifty gainers and losers today
Hindustan Unilever (HUL), Bharat Electronics (BEL), and Coal India ended as the top laggards in the Nifty 50 index.
On the other hand, Tata Consultancy Services (TCS), Eternal, and Tech Mahindra ended as the top gainers in the index.
Sectoral indices today
Nifty IT clocked a stellar gain of 3.32%, extending gains for the third consecutive session. IN just three sessions, the index has jumped nearly 7%. The sector is attracting investors due to attractive valuations.
Nifty Realty and Consumer Durables also posted strong gains of 2.17% and 1.08%, respectively.
Bank Nifty fell 0.58%, while the Financial Services index declined 0.39%.
Nifty’s technical outlook
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said a small candle on the daily charts and non-directional intraday activity indicate indecision between the bulls and bears.
“We believe that the intraday market texture is non-directional; perhaps traders are waiting for a breakout on either side. On the higher side, if the market trades above 24,050, it could then move up to 24,150–24,200. On the flip side, a breach of 23,900 could accelerate selling pressure, making it retest the levels of 23,800–23,750,” said Chouhan.
Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities, said immediate resistance for Nifty is placed in the 24,120-24,150 zone, which coincides with the 100-day EMA.
“Any sustainable move above this zone could result in Nifty extending its pullback towards 24,300, followed by 24,450 in the short term. On the downside, the immediate support for Nifty is placed in the 23,850-23,820 zone,” said Shah.
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