Mumbai, Maharashtra: Nifty 50 experienced a relatively flat trading session today, closing at 23,453.80 with a minor decline of 0.34%. This follows the Indian markets closure on Friday due to Guru Nanak Jayanti. The index had previously settled 26.35 points lower at 23,532.70 on Thursday, forming a small negative candle on the daily chart. In terms of broader performance, Nifty 50 has seen a 2.63% decline over the past five days and a 4.91% drop over the past month. However, the index remains up 3.89% over the past six months, 7.94% year-to-date, and 19.21% over the past year.
Foreign Institutional Investors (FIIs) recorded a net outflow of ₹2,073.81 crores from the Indian markets today. Their gross purchases stood at ₹58,313.21 crores, while gross sales amounted to ₹60,387.02 crores. Conversely, Domestic Institutional Investors (DIIs) displayed a net inflow of ₹1,930.19 crores, indicating a bullish stance. Their gross purchases were ₹52,313.15 crores, while gross sales totaled ₹50,382.96 crores. These figures suggest that foreign investors continued to withdraw funds, while domestic investors remained optimistic. However, please note that these numbers are provisional and subject to revision.
The Metals and Mining sector led the gains, rising 1.15% in market capitalization, with an advance-decline ratio of 89:128 and a sector P/E of 19.61. Other outperforming sectors included Electricals, up 2.72%, and FMCG, showing a 0.78% increase. Infrastructure and Alcohol sectors also fared well, rising 0.36% and 0.82%, respectively.
Conversely, sectors like Banks, Software and IT Services, Finance, Automobile and Ancillaries, Healthcare, Oil and Gas, and Capital Goods underperformed Nifty 50 today, exhibiting bearish trends.
Technical Analysis for tomorrow’s session:
As we head into tomorrow’s trading session, the Nifty 50 is poised for a potentially volatile day. The short-term trend is bearish, with the index struggling to find momentum, while the medium-term trend remains neutral and the long-term trend is still bullish. The daily chart shows a small negative candle, indicating a minor decline, and a descending triangle pattern is emerging, suggesting a potential breakdown. Key support levels to watch include 23,350-23,300 and 23,150-23,000, while immediate resistance levels are 23,550-23,600 and major resistance levels are 23,750-23,800.
Technical indicators are mixed, with the RSI (14) neutral at 44.12 and the MACD indicating a bearish crossover at -31.12. The Stochastic Oscillator is oversold at 22.14, and the three black crows pattern reinforces the bearish sentiment. For tomorrow’s session, consider selling on rallies towards 23,550-23,600 and buying on dips towards 23,350-23,300. Positional trades may be viable only if Nifty 50 breaks above 23,750 or below 23,150. Set stop-losses at 23,600 for sell trades and 23,200 for buy trades, with targets at 23,800 for sell trades and 23,500 for buy trades.
Disclaimer: Please note that technical analysis is subjective and not foolproof. This analysis is based on historical data and may not predict future market movements accurately. This analysis is for informational purposes only and should not be considered as investment advice. Please take advise from your financial advisor before investing/trading in market.
