Domestic equity markets in India began Friday's trading session under substantial selling pressure, mirroring heightened volatility across global financial markets. This turbulence was primarily fueled by dramatic price swings in precious metals, particularly gold and silver, which have created uncertainty among investors worldwide.
Market Opening and Key Indices Performance
The benchmark indices reflected this negative sentiment right from the opening bell. The Nifty 50 index commenced trading at 25,247.55, registering a decline of 171.35 points or 0.67 percent. Similarly, the Sensex opened the session at 81,950.05, marking a significant drop of 616.32 points or 0.75 percent. This downward movement indicates that investor confidence remained fragile as markets reacted to the sharp fluctuations in global commodity prices and broader asset class uncertainties.
Stock-Specific Movements and Institutional Activity
Several individual stocks experienced notable declines at the market open, highlighting the direct impact of global commodity volatility. Shares of Vedanta Limited dropped nearly 5 percent, while Hindustan Zinc also witnessed a similar 5 percent decline. These movements underscore how significant price changes in global commodities can swiftly affect related domestic stocks.
On the institutional front, data from Thursday revealed contrasting patterns. Foreign Institutional Investors (FIIs) were net sellers, offloading stocks worth ₹393 crore. In contrast, Domestic Institutional Investors (DIIs) provided crucial support to the markets through net purchases totaling ₹2,638 crore, demonstrating a divergence in investment strategies between foreign and domestic players.
Technical Analysis and Market Outlook
Market analysts have been closely monitoring the technical indicators to gauge future direction. The Nifty 50 has been consolidating within a range of 25,400 to 24,900 levels for six consecutive sessions, suggesting a short-term sideways trend. A breakout from either side of this range is expected to provide clearer directional cues. Importantly, this consolidation is occurring above the crucial 200-day Simple Moving Average (SMA) support zone at 25,184 levels, which remains a key technical support. The daily Relative Strength Index (RSI) continues to remain in positive territory, indicating underlying strength despite the current volatility.
Expert Stock Recommendations and Analysis
Technical analysts have identified several stocks showing promising patterns based on current market conditions:
Sammaan Capital Ltd (CMP: ₹148)
This stock has been consolidating around multiple support zones near ₹135 levels for the past couple of months. The consolidation is strongly supported by the 200-day SMA at ₹139, which serves as a crucial support level. Rising volumes over the past 3-4 sessions indicate increased market participation, while positive divergence on the daily RSI suggests strengthening momentum near support zones. The stock's position above its 20, 50, and 200-day SMAs signals bullish sentiment. Analysts recommend buying, holding, and accumulating this stock with an expected upside of ₹155-165 and downside support at ₹141-135 levels.
NTPC (CMP: ₹358)
NTPC has decisively broken above the multiple resistance zone of ₹355 levels on a closing basis, a level that had persisted for 8-10 months. This breakout was accompanied by substantial trading volumes, reconfirming bullish sentiments. The stock is positioned above its 20, 50, 100, and 200-day SMAs, with these averages trending upward alongside rising price averages. Daily and weekly Bollinger Band buy signals indicate increased momentum, while the RSI across daily, weekly, and monthly timeframes remains in favorable territory. Analysts suggest buying, holding, and accumulating NTPC with an expected upside of ₹370-390 and downside support at ₹355-345 levels.
Tata Steel Ltd (CMP: ₹202)
Tata Steel is exhibiting a strong uptrend across all timeframes, consistently forming higher tops and bottoms. The stock is trading above its 20, 50, 100, and 200-day SMAs, with these averages gradually increasing alongside rising prices. On the weekly chart, the stock has confirmed a "rounding bottom" formation at ₹186 levels, signaling positive bias. The RSI across daily, weekly, and monthly timeframes remains in favorable territory, indicating sustained strength. Analysts recommend buying, holding, and accumulating Tata Steel with an expected upside of ₹210-223 and downside support at ₹194-186 levels.
Disclaimer: The views and recommendations presented 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.
