Indian Equity Market Report – February 10, 2025

Market Summary:

On February 10, Indian equity indices ended on a negative note, with the Nifty closing below the crucial 23,400 mark. The Sensex fell by 548 points to settle at 77311, while the Nifty declined by 178 points (0.76%) to close at 23,381.

Market Performance Overview:
The stock market exhibited pessimism throughout the trading session as subdued corporate earnings, ongoing global tariff concerns, and currency depreciation weighed on investor sentiment. Foreign investors continued to withdraw funds in favor of safe haven US financial assets, leading to market weakness. Expensive valuations led to further declines in mid and small-cap stocks.

Key Highlights:

• Nifty closed lower for the fourth consecutive session.

• A long bearish candlestick formed on the daily chart, breaking below key support levels (23,400).

• Immediate support level: 23,220; a break below this could nullify the bullish higher-top-higher-bottom chart pattern.

• Immediate resistance level: 23,500.

• A further downside movement could push Nifty towards the 23,000 mark if it sustains below 23,350.

• RSI has entered a bearish crossover, indicating a further decline.

Sectoral & Stock Performance:

• All sectoral indices ended in the red, with the metal, media, pharma, consumer durables, energy, and realty sectors declining by 2-3%.

• Broader markets were hit hard, with Nifty Midcap and Smallcap indices shedding 2% each.

• Top Losers: Trent, Power Grid Corp, Tata Steel, Titan Company, ONGC.

• Top Gainers: Kotak Mahindra Bank, Britannia Industries, Bharti Airtel, HCL Technologies, Tata Consumer Products.

Technical Analysis & Market Outlook:

• The decline continued as Nifty formed a lower top on the daily chart, weakening overall sentiment.

• The index broke its key support level of 23,500, pointing to a further move towards 23,240 as the next support level.

• Resistance has shifted lower to 23,465, indicating a downward trend in the short term.

• If Nifty sustains below 23,350, it may test the 23,000 level.

• Market sentiment remains cautious, with rising domestic yields and investor preference for safer assets like gold adding to the uncertainty.

Conclusion:
The Indian equity market continues to face downward pressure due to global tariff-related concerns, a weak demand environment, and cautious investor sentiment. A further breakdown below 23,220 could trigger additional selling pressure, while a reversal above 23,500 might bring some stability. Investors should exercise caution and closely monitor key support and resistance levels in the coming sessions.