Stock Market Closes Consequently, Anticipating Crucial GDP Data Release
In a downward trend, the Indian stock market concluded Friday's trading session in the red. The BSE Sensex took a hit of 182.01 points, or 0.22 percent, to close at 81,451.01, while the Nifty 50 dipped 82.9 points, or 0.33 percent, at 24,750.70.
Midcap and smallcap stocks extended a meandering performance, with the Nifty Midcap 100 index dipping 37.25 points and the Nifty Smallcap 100 index falling by 6.10 points. The declines were primarily led by the sectors of metal and IT, as these indices dropped 1.69 percent and 1.15 percent respectively. Other sectors like auto, pharma, and FMCG also experienced losses, however, PSU banks, financial services, and media indices managed to close in the green.
The Nifty saw a volatile trading day, marked by a slightly negative bias. In the smaller time frame, an indicative bearish moving average crossover formed.
Rupak De, a senior technical analyst at LKP Securities, highlighted the bearish price momentum in the hourly RSI chart. He also mentioned signs of exhaustion on the daily RSI accompanied by a strong negative divergence. The immediate support for the Nifty is projected at 24,700, with a potential drop towards 24,500 should the index breach this level. In contrast, should 24,800 act as a resistance level, a significant number of call writers have built positions at this point.
According to analysts, the impact of upcoming GDP figures will become apparent in the coming trading sessions. As global market contends with macroeconomic concerns due to the unstable global trade landscape, investors have maintained a more defensive stance. The temporary reinstatement of US tariffs by a federal appeals court and the anticipation of strong domestic Q4 GDP data also weighed on investor sentiment. The rupee, meanwhile, weakened by 8 paise and reached 85.52 against the dollar as the dollar index gained 0.25 percent to 99.46.
Finance and investing were affected by the stock market's downward trend, as the Nifty saw a volatile trading day with bearish price momentum, potentially leading to further drops towards 24,500. Amidst macroeconomic concerns and a more defensive investor stance due to the unstable global trade landscape, some sectors like financial services and media managed to perform positively.
