Indian stock markets had a weak start on Friday and huge fluctuations were seen throughout the day. However, the market reversed course dramatically in the final hours. Although the market closed flat amid volatility in the beginning, it witnessed a significant recovery from the day’s lows. Nifty improved 200 points from its lower levels and closed near 25,500. The Sensex improved 500 points from its low and closed near 83,200. Bank Nifty improved by 700 points and closed near 57,900. Midcap and smallcap stocks also bounced strongly from their lower levels. According to the closing data, the Sensex fell 94 points to close at 83,216. Nifty fell 17 points to close at 25,492. Bank Nifty closed 322 points higher at 57,876. In the currency market, the rupee weakened by 5 paise to close at 88.66/dollar.
What is the reason for the market correction?
– After six consecutive days of weakness, the markets are slightly oversold.
-Markets usually start out strong, followed by a selloff.
– Today’s recovery was caused by a large gap-down opening.
– The recovery was led by the strongest Bank Nifty.
– Nifty, midcap and smallcap markets broke key support levels yesterday.
However, Bank Nifty remained range bound till yesterday.
– There was a fall in intraday today, but recovery happened immediately.
What are the goals of recovery?
The first target of Nifty in recovery is in the range of 25575-25675.
– The first target of Bank Nifty is in the range of 57950-58125.
– Nifty remained stable and closed above 25725 and Bank Nifty above 58250, indicating end of weakness.
Nifty closed above 25400 and Bank Nifty closed above 57400, which is a sign of increasing weakness.
What should be the strategy in this market?
– Today is the weekly closing, so it is very important.
– If there is no selling by foreign institutional investors (FIIs) in the last one and a half hour, a good closing is possible.
– If you are feeling apprehensive after seeing the morning decline, then reduce your position in an uptrend.
– Decide to reduce your position based on the closing at 3:20 pm today.
On the Nifty, only Max Healthcare, ICICI Bank, Sun Pharma, ITC, HDFC Life, SBI Life and Power Grid were trading with gains. Bharti Airtel, HCL Tech, Tech Mahindra, TCS, Wipro and Jio Financials were the biggest fallers. Initially, the Sensex opened 161 points lower at 83,150. Nifty opened 76 points lower at 25,433. Bank Nifty opened 163 points lower at 57,391. In the currency market, the rupee weakened by 5 paise to 88.66/dollar. A fall of almost 130 points was seen in the Nifty in the morning. Factors like huge fall in US markets, ongoing selling by foreign currency investors and softening of oil prices will decide the market movement. Investors will also keep an eye on the quarterly results of many major companies today.
Heavy fall in American markets
Wall Street fell sharply on Tuesday due to heavy selling in AI stocks. Dow Jones closed 398 points, Nasdaq 445 points and S&P 500 also closed in the red. Currently, Dow futures are also sluggish, reflecting weakness in Asian markets.
recession in commodity market
Crude oil fell below $64 a barrel, its lowest level in recent months. Gold and silver are also trading stable in the international market. In the domestic market, gold closed at ₹ 1,20,700 and silver at ₹ 1,47,300.
Diplomatic stir due to Trump’s statement
Former US President Donald Trump has indicated that he may visit India next year. He said “good talks are going on” with Prime Minister Modi on a trade deal, which has boosted investor enthusiasm about India-US relations.
FII selling, DII buying continues
Foreign investors have sold for the sixth consecutive day. Yesterday, FIIs sold shares worth a total of ₹4,021 crore, while domestic funds continued buying for the 49th consecutive day and invested around ₹5,300 crore in the market.
Government’s big statement on F&O trading
Finance Minister Nirmala Sitharaman has said that the government has no intention of stopping F&O trading. He cautioned investors to “trade only after understanding the risks.” This statement is being seen as a boost to market confidence.
A series of good and bad results
The results of Apollo Hospitals, Lupine, Cummins, MCX and LIC were better than expected. Meanwhile, NHPC, CG Consumer and Amber reported weak quarterly results. ABB and Mankind Pharma had mixed results.
Know the results of these companies today.
Bajaj Auto, Hindalco and Trent will announce their Q2FY26 results on Nifty today. In the F&O segment, results of eight companies including Divi’s Lab, Kalyan Jewellers, NALCO, Nykaa and Torrent Pharma will be declared.
