Mkt May Slip Lower If Selling Pressure Intensifies

Mumbai: On Wednesday, the benchmark indices witnessed a volatile trading session, after a roller coaster intraday activity the Sensex was down by 120 points. Among Sectors, IT index was the top gainer, rallied 2.5 per cent whereas Healthcare and Pharma indices shed over 1.5 per cent. Technically, after weak opening market bounce back sharply but one more time it witnessed selling pressure at higher levels.

Shrikant Chouhan, Head-Equity Research, Kotak Securities, said: “The intraday market texture is weak but oversold hence, we could expect one quick pullback rally if the market succeeds to trade above 80,500. Above the same, it could bounce back till 80,700-80,900.” On the other side, below 79,900 the selling pressure is likely to accelerate. Below which, the market could slip till 79,600-79,400.

Prashanth Tapse, Senior VP-Research, Mehta Equities, said: “While markets exhibited volatility in early trades, key indices erased gains in the second half to end marginally lower amid weakness in banking, power, oil & gas and realty shares. However, recovery in IT stocks helped markets pare losses. More than economic factors, it’s the FII selling in the current month that has been a key drag, while subdued quarterly earnings so far also kept the mood sluggish to negative.”

Domestic equity indices Sensex and Nifty50 closed on negative note, this decline was driven by widespread selling across all sectors, particularly in Pharma, Infra and auto indices, which were the hardest hit. Goldman Sachs downgraded its outlook on Indian equities from overweight to neutral due to deteriorating earnings sentiment and high valuations amidst slower economic growth. The brokerage revised its Nifty target to 27,000 from 27,500, indicating potential bearish trends in the near term.

Vaibhav Vidwani, Research Analyst, Bonanza, said: “Despite strong quarterly results from companies like Bajaj Finance and Zomato, investor sentiment remained cautious as the market grapples with ongoing volatility and uncertainty.”