Closing Bell: Sensex snaps 4-session gaining streak; realty, banking stocks drag

The Indian equities market ended flat with a negative bias on Tuesday, ending a four-session gaining streak, as investors booked profits. The market saw muted trade and moved in a narrow range as participants remained cautious amid mixed global cues.

The BSE Sensex closed at 82,391.72, down by 53.5 points, or 0.06%, while the NSE Nifty50 ended marginally higher by 1.05 points at 25,104.25. Similarly, the broader markets saw a lacklustre trend, with the Nifty Midcap100 and the Nifty Smallcap100 indices ending a tad higher.

On the sectoral front, the indices witnessed mixed trends, with the Nifty Realty emerging as the top loser, falling 1.14%, led by sectoral heavyweights Prestige, Macrotech Developers, DLF, and Brigade Enterprises. Among others, Auto, Bank, Financial Services, and Oil & Gas also saw some selling and settled in the red zone.

India VIX, which gauges the volatility in the markets, slid by 4.8% on Tuesday to settle at 13.98 points, indicating increased confidence and stability in the market.

“Participants remain slightly cautious amid mixed global cues, and the divergent trend among index heavyweights continues to weigh on overall sentiment,” said Ajit Mishra, SVP, Research, Religare Broking.

Mishra maintains a positive outlook and suggests adopting a “buy on dips” approach, with a strong emphasis on stock selection. “We are seeing increased participation from sectors like auto, IT, and pharma, which were previously on the sidelines, now joining the uptrend on a rotational basis. Traders should align their positions accordingly."

The top gainers and losers

Among the BSE Sensex pack, 14 of the 30 stocks ended in negative terrain, led by Asian Paints, which settled 1.27% lower. The other top losers were Bajaj Finance, Tata Steel, Bajaj Finserv, and ICICI Bank, falling in the range of 0.84% to 1.16%.

On the other hand, the top five gainers were Tech Mahindra, Tata Motors, Infosys, HCL Tech, and IndusInd Bank, gaining between 1.2% and 2.2%.

Technical outlook

The Nifty has sustained above the previous consolidation zone on the daily timeframe, indicating a continuation of the uptrend, said Rupak De, Senior Technical Analyst at LKP Securities. 

“This positive sentiment is likely to persist, and the sentiment [will] favour long trades as long as the index remains above the key support level of 24,850. On the higher side, the index may move towards 25,350 in the short term, with the potential for an extended rally if it breaks decisively above 25,350. However, a fall below 24,850 could trigger a correction," he said.

Shrikant Chouhan, head-equity research, Kotak Securities, said the market has been witnessing activity over a narrow range over the past two days. The key support zones for traders include 25,000 and 82,000, and 25,050 and 82,100 for the Nifty and the Sensex, respectively. On the other hand, 25,150/82,400-25,200/82,600 would act as a key resistance area for the bulls. “We are of the view that as long as the market trades between 25,000/82,000 and 25,200/82,600, range-bound textures are likely to continue,” he said.

“A successful breakout above 25,200/82,600 could push the market up to 25,350/83,000-25,400/83,200. On the other side, below 25,000/82,000, selling pressure is likely to accelerate. Below this level, the market could retest the level of 24,850/81,700-24,775/81,500,” Chouhan added.

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