Market Summary: On February 3, Indian equity markets closed on a negative note with the benchmark indices facing losses amid high volatility. The Sensex declined by 319.22 points or 0.41% to settle at 77,186.74, while the Nifty dropped 121.10 points or 0.52% to close at 23,361.05. Market sentiment remained fragile, influenced by weak global cues and sector-specific pressures.
Market Performance Overview:
Nifty opened with a gap down and showed consolidation before ending lower.
Sensex fell by 319.22 points, closing at 77,186.
Nifty declined by 121.10 points, closing at 23,361.
The index remained volatile but managed to stay above the critical 21-day EMA.
Support is placed at 23,200/23,100, while resistance is at 23,400.
Nifty retraced its recent gains and found a support zone at 23,250 – 23,209, aligning with the 20-day SMA and the 50% Fibonacci retracement level.
The immediate resistance level stands at 23,560 – 23,630.
A decisive breakout above 23,500 – 23,600 could open more upside potential.
Technical Indicators & Market Trends:
A small green candle with a long lower shadow appeared on the daily chart, indicating a range-bound market with weak downside momentum.
The formation of a higher bottom suggests a potential uptrend continuation.
If the market holds its support level at 23,200, it could resume an upward movement towards 23,820 – 24,000.
In the near term, the uptrend remains intact, with the possibility of a rebound from higher lows.
The market is currently volatile and non-directional, making level-based trading a preferred strategy.
For day traders, key support levels are 23,270/77,000 and 23,220/76,800, while resistance is at 23,500/77,500 and 23,550/77,800.
A breach of 23,220/76,800 could lead to a retest of 23,100/76,500 levels.
Sectoral Performance:
Defence Sector: The worst performer, shedding over 5%.
Consumer Durables: The only major gainer, up by 0.5%.
IT Sector: Rose by 0.7%, showing resilience.
Capital Goods: Down 4%, among the biggest losers.
Energy, Metal, Oil & Gas, Power, PSU: Fell between 2-3%.
Metal Sector: Dropped by more than 1.5%, making it one of the weakest performers.
Midcaps & Smallcaps: Midcaps showed recovery, but smallcaps ended at their lowest levels of the day.
Top Gainers & Losers:
Gainers: Bajaj Finance, M&M, Wipro, Shriram Finance, Bajaj Finserv.
Losers: L&T, ONGC, Bharat Electronics, Tata Consumers, Coal India.
Market Outlook: The Indian stock market faced selling pressure due to weak global sentiment, including concerns over tariff-related trade wars. The broader market indices exhibited disparity, with midcaps showing resilience while smallcaps underperformed.
The market found support at the 21-day DMA (23,280), signaling potential for a recovery. If this support holds, Nifty could aim for 23,550 in the coming sessions. However, a fall below 23,200 could trigger further downside towards 23,100.
Given the current scenario, traders and investors should adopt a cautious approach, focusing on key support and resistance levels while monitoring global market cues for further direction.
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