Mumbai’s bustling stock market kicked off Friday with a sharp downturn, painting a red picture amid weak global signals triggered by escalating tensions in West Asia. The BSE Sensex, comprising 30 key stocks, opened at 79,658.99, down 356.91 points or 0.45% from its previous close of 80,015.90. Meanwhile, the NSE Nifty started trading at 24,656.40, shedding 109.50 points or 0.44% from 24,765.90.
By around 9:30 AM, the Sensex had slipped further to 79,699.81, a decline of 316.09 points or 0.40%, while the Nifty was at 24,679.30, down 86.60 points or 0.35%. Despite the frontline indices’ struggles, broader market indicators showed resilience. The Nifty Midcap 100 index climbed 0.48%, and the Nifty Smallcap 100 rose 0.64% in early trade.
Sector-wise performance was mixed, with the Nifty IT index leading the gains at 1.23%. In contrast, Nifty Auto fell 0.60%, Nifty FMCG dipped marginally by 0.02%, and Nifty Bank declined 0.85%. This comes after Thursday’s strong recovery, where the market snapped a four-day losing streak. The Sensex had surged 899.71 points or 1.14% to close at 80,015.90, and Nifty gained 285.40 points or 1.17% to end at 24,765.90.
Technical analyst Akash Shah from Choice Broking highlighted key levels: Nifty’s support zone lies between 24,550 and 24,500, with 24,850 acting as immediate resistance. The Relative Strength Index (RSI) at 37.55 suggests gradual improvement from oversold territory, hinting at potential recovery.
Market dynamics were influenced by investor flows. Foreign Institutional Investors (FIIs) continued selling for the fifth straight session, offloading shares worth approximately Rs 3,752 crore. Domestic Institutional Investors (DIIs), however, bought over Rs 5,000 crore for the seventh consecutive day, providing a buffer against the FII outflows.
Experts urge caution amid global uncertainties and rising volatility. Investors should focus on fundamentally strong stocks during dips. Fresh buying strategies should wait for a decisive breakout above 25,000 on the Nifty, which could confirm a sustained bullish trend and restore market confidence.