At the opening bell, the Sensex slid 1,135.48 points to 75,333.30, while the Nifty fell 408.35 points to 22,855.55.
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The stock market opened down on Tuesday, impacted by ongoing patterns from the Lok Sabha election. This dip comes after a record high on Monday, with big gains and no losses.
At the opening bell, the Sensex slid 1,135.48 points to 75,333.30, while the Nifty fell 408.35 points to 22,855.55. Only six Nifty companies were up, while 44 were down, showing broad market caution, reported ANI.
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According to the report, the top gainers on the Nifty index were Sun Pharma, Divi's Lab, Nestle India, Cipla, and Britannia. Adani Ports, Adani Enterprises, Larsen & Toubro (LT), Coal India, and ONGC were among the worst performers, bringing the index down.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, presented a technical analysis: "As long as the index trades above 23,000, the bullish momentum is likely to continue." The index may reach 23,500, 23,800, or even 24,000 levels. However, if it falls below 23,000, it may correct back to 22,800 levels." He urged investors to take partial gains on long positions at $23,800.
Chouhan also commented on the Bank Nifty's performance, which just surpassed 51,000 and might potentially reach 52,000 levels, with support at 50,500, the ANI report stated.
Banking and market expert Ajay Bagga commented on the market dynamics, emphasizing the importance of election results. He said, "Yesterday's strong FII inflow was commendable, but the next triggers will be the final tally, which will contribute to political continuity and stability, the cabinet composition, and then the Union Budget expectations. Valuations are not cheap, and we see froth in the markets, which could lead to some selling later in the week."
He added, "Markets have given up more than the gains of Monday due to lower-than-anticipated early trends for the NDA. These are still very early trends, and markets will wait for more clarity by the afternoon post the initial sell-off."
The current market behaviour indicates investor concern about the election results and their consequences for future economic and political stability. While the markets are experiencing immediate volatility, the overall mood remains cautiously hopeful, as long as the indices stay above important support levels.
Investors should be cautious and explore strategic profit-taking to navigate anticipated volatility in the coming days.
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