The Indian stock market is expected to have a cautious start on Tuesday, reflecting weaker global market sentiments due to a sell-off in technology stocks across US and Asian markets. However, the trends on the Gift Nifty indicate a positive opening for Indian benchmarks. As of now, Gift Nifty was trading around the 22,915 level, suggesting a premium of nearly 68 points over the previous Nifty futures close.
On Monday, domestic equity markets saw a sharp decline, with both the Sensex and Nifty 50 dropping over 1%. The Nifty 50 ended below the 22,900 mark, signaling a volatile market ahead. Investors are likely to stay cautious due to global economic uncertainties and the pressure on tech stocks.On Monday, the Sensex and Nifty 50 experienced a significant sell-off. The Sensex plunged by 824.29 points, or 1.08%, to close at 75,366.17, while the Nifty 50 dropped by 263.05 points, or 1.14%, settling at 22,829.15.
Technically, the Nifty 50 formed a bearish candle on the daily chart, indicating negative sentiment in the market. Moreover, it has been making lower lows over the past two sessions, suggesting a continued downward trend unless there is a reversal or a strong recovery. This pattern could signal further weakness, and traders may remain cautious in the near term as market conditions stay volatile. Investors may closely monitor global cues and any potential triggers that could impact market sentiment.
The Sensex faced significant losses on Monday, dropping 824.29 points to close at 75,366.17, with technical indicators suggesting a bearish outlook in the short term. According to Shrikant Chouhan, Head of Equity Research at Kotak Securities, the market experienced sustained selling pressure after a gap-down opening, forming a bearish candle on the daily charts. The Sensex closing below the 76,300 mark is a negative sign, signaling weakness and volatility in the market.
Chouhan recommends a level-based trading strategy for day traders, as the market remains unpredictable. The 76,300 level for the Sensex will be crucial to watch. As long as the Sensex stays below this threshold, weak sentiment is likely to persist, and further downward pressure could be expected. Investors and traders should remain cautious and focus on key levels for potential trading opportunities while managing risk in this uncertain environment.