The Indian equity market faced intense selling pressure on Thursday, mirroring a weak global sentiment triggered by renewed fears of a trade war and the spectre of tariffs under a potential Trump administration. The sell-off was broad-based, dragging key benchmark indices deep into the red.
Market Carnage: Key Indices in Freefall
The benchmark Nifty 50 index broke through the crucial 26,000 psychological mark, closing the session at 25,876. This represented an intraday loss of nearly 263 points. The 30-share BSE Sensex remained under relentless pressure throughout the trading day, finishing a staggering 780 points lower at 84,180.
The banking sector was not spared either. The Bank Nifty index declined by 304 points to settle at 59,686. The pain extended to the broader market, with the S&P BSE Small-Cap Index falling by 1.97% and the Mid-cap index dropping by over 1.99%.
Selling was witnessed across the board, but sectors like power and energy, CPSE, infrastructure, metal, oil and gas, and IT bore the maximum brunt. Public sector undertaking (PSU) stocks also found themselves firmly in the grip of the bears during the market rout.
Expert Technical View: Bias Turns Weak
Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, stated that the market bias has turned weak after the Nifty 50 closed below the critical 50-day Exponential Moving Average (EMA) support. She highlighted that the index breached the crucial support placed at 25,900.
"The Nifty 50 index plunged with heavy profit booking witnessed as the day progressed to close below the important support zone of the 50-DEMA level at 25,900 zone," Parekh said. She pointed out that the index is now precariously placed, with the next major support positioned near the significant 100-period Moving Average at the 25,530 level.
Regarding the Bank Nifty, Parekh noted that while it witnessed profit booking, it showed relative resilience compared to the Nifty. She emphasized that the banking index must sustain the important support near the 50-DEMA level at 58,800. "The upcoming sessions would be crucial, which shall decide the further course of the market, and with the result season started, we can anticipate high volatility in the coming days," she added.
Parekh identified the immediate support for the Nifty 50 at 25,700, with resistance at 26,100. For the Bank Nifty, the expected daily range is between 59,200 and 60,200.
Intraday Stock Picks from Vaishali Parekh
For traders looking at intraday opportunities, Vaishali Parekh recommended three stocks for Thursday's session:
1. IDFC First Bank: Buy at ₹85.50, target ₹90, stop loss ₹83. The long-term uptrend remains intact, suggesting a new upward momentum.
2. CG Power: Buy at ₹620, target ₹645, stop loss ₹610. The stock appears to have bottomed out and is poised for a trend reversal.
3. Data Patterns: Buy at ₹2715, target ₹2800, stop loss ₹2650. The chart shows a formation of a higher bottom, signalling potential upside momentum.
Precious Metals See a Glimmer
In contrast to equities, precious metals opened with an upside gap in the international markets after three consecutive sessions of losses. The COMEX gold price is currently quoted at around $4,480 per ounce, while the COMEX silver rate today is quoted at approximately $76,850 per ounce.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, and not of Mint. Investors are advised to consult certified experts before making any investment decisions.
