Mumbai, 27 February. Amid mixed signals from global markets, on Friday, the last trading day of the week, the Indian stock market opened in the red with a slight decline and started the trading on a sluggish note. During this period, BSE Sensex fell by about 30 points and opened at 82,220.48, but within a short time it fell by 364.85 points or 0.44 percent to reach 81,883.76.
At the same time, NSE Nifty opened at 25,459.85, falling by almost 40 points, but till the time of writing the news, it fell by 119.05 (0.47 percent) points to reach 25,377.50. During this period, all Nifty indices except Nifty IT were seen trading in the red. In the broader markets, the Nifty Midcap 100 index fell 0.41 per cent and the Nifty Smallcap 100 index fell 0.51 per cent.
At the same time, if we look at sector wise, only Nifty IT index saw a rise of 0.81 percent, while Nifty Auto saw a decline of 0.84 percent, Nifty FMCG saw a decline of 0.99 percent and Nifty Bank saw a decline of 0.53 percent. Among the 30 Sensex stocks, IT stocks witnessed buying for the third consecutive trading session and Infosys, Trent, Tech Mahindra, Eternal, HCL Technologies and TCS were among the top gainers. On the other hand, shares of Maruti Suzuki, HUL, UltraTech Cement, Mahindra & Mahindra, Bharti Airtel, ITC, Asian Paints and Kotak Bank recorded the biggest decline.
Akash Shah, Technical Research Analyst, Choice Broking said that there was a lot of ups and downs in the market in the last trading session. Nifty50 opened with a strong gap-up of 83 points and hit intraday high of 25,572.95. However, it could not hold on to the upper levels and slipped to 25,400 with a sharp fall of about 170 points.
Finally, with a last-minute recovery, it closed at 25,496.55 and registered a marginal gain of just 14 points. This shows that the market currently lacks clear direction. For Nifty, the level of 25,600-25,650 is the immediate resistance, while the range of 25,300-25,350 is seen as support. At the same time, RSI is at 47.11, which indicates neutral momentum. The expert further said that if we talk about institutional investors, on February 26, foreign institutional investors (FIIs) were net sellers by selling Rs 3,465 crore.
Domestic institutional investors (DIIs) remained buyers for the third consecutive session and bought shares worth more than Rs 5,000 crore. Experts said that in an environment of global uncertainty and increased volatility, traders are advised to adopt a disciplined and thoughtful strategy. During market downturn, it would be better to focus on stocks with strong fundamentals. It would be advisable to consider taking fresh long positions in Nifty only after a clean and sustainable breakout above 25,800 levels. This will give strong bullish signals in the market and confirm the positive structure.
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