Why Did Sensex and Nifty End Lower Amid Volatile Trading?
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Synopsis
The Indian stock markets faced a downturn on Tuesday, marked by volatility as investors engaged in profit-taking. With the Sensex and Nifty both experiencing declines, market watchers express cautious optimism about future trends. Discover the key factors influencing this movement and what it means for the market's trajectory moving forward.
Key Takeaways
- Sensex closed at 84,628.16, down 150.68 points
- Nifty finished at 25,936.20, declining 29.85 points
- Profit booking observed after recent market highs
- Support for Nifty at 25,850, resistance at 26,300
- Sectoral gains in Nifty Metal and PSU Bank
Mumbai, Oct 28 (NationPress) The Indian stock market concluded on a negative note on Tuesday following a volatile trading day, as investors engaged in profit-taking across various sectors while maintaining a cautious stance.
The Sensex dropped by 150.68 points, or 0.18%, closing at 84,628.16, whereas the Nifty fell by 29.85 points, or 0.11%, to finish at 25,936.20.
Analysts noted, "The overall chart setup on the daily timeframe remains intact, with the Nifty trading comfortably above the 21EMA, preserving a bullish bias."
"The RSI is experiencing a bullish crossover and remains in a high momentum zone. In the short term, the index could see a substantial rally as momentum increases above 26,000," they added.
Experts highlighted that resistance is observed at 26,300, while support is located at 25,850.
Among the Sensex constituents, Trent, Tech Mahindra, Bajaj Finserv, HCL Tech, Mahindra & Mahindra, and Bajaj Finance were notable laggards.
Conversely, key gainers such as Tata Steel, Larsen & Toubro (L&T), State Bank of India, Tata Motors Passenger Vehicles, and Kotak Mahindra Bank helped mitigate market losses.
Broader market indices showed minimal change, with the Nifty MidCap index dipping by 0.02% and the Nifty SmallCap index slightly rising by 0.02%.
Sector-wise, Nifty Metal and PSU Bank emerged as notable gainers, each advancing over 1%.
In contrast, Nifty Realty was the biggest loser of the day, trailed by sectors like IT, Energy, Financial Services, FMCG, Pharma, and Consumer Durables, all concluding in the red.
Analysts attributed the decline to profit booking following recent market peaks and a cautious investor sentiment ahead of significant global and domestic economic data releases.
"The domestic market remained volatile in negative territory and closed flat, burdened by profit booking on monthly expiry and weak global cues," experts stated.
"Notably, buying interest emerged at lower levels, indicating underlying investor confidence. Market sentiment is anticipated to be bolstered by easing global trade tensions and expectations of an upgrade in domestic corporate earnings, further reinforcing resilience," analysts mentioned.
Point of View
My unbiased perspective reflects the nation's pulse. The recent decline in stock indices highlights a cautious investor sentiment amidst profit booking. While immediate reactions may seem negative, the underlying market resilience, driven by potential corporate earnings upgrades, suggests a cautious optimism. It’s a reminder of the inherent ebb and flow in financial markets that requires a balanced outlook.
NationPress
25/12/2025
Frequently Asked Questions
What caused the decline in Sensex and Nifty?
The decline was primarily due to profit booking after recent highs and cautious investor sentiment ahead of significant economic data releases.
Which sectors performed well during the trading session?
The Nifty Metal and PSU Bank sectors were notable gainers, each advancing over 1%.
What is the support level for Nifty?
Support for Nifty is positioned at 25,850, while resistance is seen at 26,300.
How did broader market indices perform?
The Nifty MidCap index edged down 0.02%, while the Nifty SmallCap index rose marginally by 0.02%.
What should investors watch for moving forward?
Investors should monitor global trade tensions and domestic corporate earnings for potential market resilience.
