Indian markets inch higher amid sector-specific movements 

The Indian stock markets closed marginally higher on Monday, with both BSE Sensex and NSE Nifty 50 recording modest gains in a session characterized by mixed sectoral performance and range-bound trading.

The Sensex concluded the day at 82,988.78, up 97.84 points or 0.12 per cent, while the Nifty 50 gained 27.25 points or 0.11 per cent to close at 25,383.75.

The day’s trading saw a slightly positive market breadth, with 2,167 stocks advancing and 1,943 declining on the BSE.

A total of 4,201 stocks were traded, with 91 remaining unchanged. Notably, 387 stocks reached their 52-week highs, while only 35 touched their 52-week lows. The market also saw 473 stocks hitting the upper circuit and 238 stocks touching the lower circuit.

Among the top gainers on the NSE were NTPC (2.55 per cent), JSW Steel (1.71 per cent), Hindalco (1.67 per cent), Shriram Finance (1.52 per cent), and L&T (1.24 per cent).

Conversely, the top losers included Bajaj Finance (-3.38 per cent), Hindustan Unilever (-2.16 per cent), Bajaj Finserv (-2.02 per cent), SBI Life (-1.27 per cent), and Britannia (-1.04 per cent).

Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided insights on the day’s market activity: “Today, the benchmark indices witnessed lackluster activity, the Nifty ends 21 points higher while the Sensex was up by 98 points. Among Sectors, Media index was the top gainer, rallied over 1 per cent whereas FMCG stocks witnessed intraday profit booking at higher levels.”

Chouhan further elaborated on the technical aspects, “Technically, after positive opening entire day the market hovered between 23350 to 25440/82850-83100. A small bearish candle on daily charts and range bound activity on intraday charts indicating indecisiveness between the bulls and the bears. We are of the view that, the larger texture of the market is bullish but we could see a range bound activity in the near future.”

The Sensex stocks showed varied performances, with NTPC leading the gains at 411.05 (+2.44 per cent), followed by JSW Steel at 970.80 (+1.71 per cent), and L&T at 3662.45 (+1.35 per cent). On the losing side, Bajaj Finance was the biggest laggard at 7342.10 (-3.36 per cent), followed by Hindustan Unilever at 2866.50 (-2.30 per cent), and Bajaj Finserv at 1858.05 (-1.89 per cent).

Ajit Mishra, SVP of Research at Religare Broking Ltd, commented on the market’s overall stance: “The markets remained lackluster for another session, closing marginally in the green, extending Friday’s brief recovery. After an initial uptick, the Nifty traded within a narrow range, eventually settling at 25,383.75 level. Sectoral trends were mixed, with energy and metals showing decent gains, while FMCG and IT saw slight declines.”

Mishra added, “The ongoing time-wise correction in the index is seen as healthy, and participants are encouraged to stick with a ‘buy on dips’ strategy. We continue to favor banking, financials, realty, metal, and IT sectors. Traders should focus on identifying stronger stocks with relative strength, accumulating them gradually during this phase.”

Ameya Ranadive, Sr Technical Analyst at StoxBox, offered additional context: “Indian markets began the week on a strong note, buoyed by rising expectations of interest rate cuts from the Federal Reserve and other central banks. This optimism comes as job growth slows and inflation eases, which are seen as paving the way for a softer economic landing.”

Ranadive also noted, “The Indian stock indices extended their gains, with the markets reaching new all-time highs, supported by robust performances in the metals sector amid a weaker dollar. The Sensex closed at a record high of 82,988.70, up by 97.84 points, while the Nifty 50 ended the day at 25,377.80, gaining 21.30 points but falling 6 points short of its highest closing level.”

In the broader market, the Nifty Midcap 100 rose by 0.38 per cent, and the Nifty Smallcap 250 climbed 0.16 per cent. Several sector-specific indices, including Nifty Pharma, Nifty Financial Services, and Nifty IT, hit new highs during the day.

Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd, provided a technical perspective: “Nifty started the day on a flat to positive note and registered a new record high of 25,445.70 but was unable to sustain above it, resulting in profit booking. Ultimately, the index settled the day on a marginal positive note at 25,384. Technically, the small red candle formation on the daily chart signals some short-term hesitation, but the fact that Nifty remained above the 25,335 (breakout level of the rounding bottom pattern) suggests underlying strength.”

Yedve added, “The 21-DEMA support is currently placed near 25,020. As long as Nifty stays above 25,000, a ‘buy on dips’ strategy is advisable, with the potential for the index to test 25,600 in the short term.”

Regarding Bank Nifty, Yedve noted, “Bank Nifty started the day on a strong note and managed to close higher at 52,153 despite market volatility. The index sustained above the cup-and-handle breakout, which indicates potential strength. In the short term, Bank Nifty could test levels of 52,800–53,000, with a medium-term target of 53,800.”

As the markets continue to show resilience amid global economic uncertainties, investors and traders are advised to remain cautious and adopt a “buy on dips” strategy, focusing on sectors and stocks with strong fundamentals and relative strength. The mixed sectoral performance and range-bound trading suggest that market participants should closely monitor both macro-economic factors and company-specific developments in the coming sessions.