Did Sensex Manage to Close in Green Amidst Volatile Trade?
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Synopsis
In a turbulent trading session on April 29, the Sensex and Nifty indices displayed considerable volatility, showcasing the impact of geopolitical tensions and investor caution. As key stocks fluctuated, analysts warned of potential challenges ahead, urging traders to watch critical resistance and support levels for future opportunities.
Key Takeaways
- The Sensex closed 70 points higher at 80,288.
- The Nifty finished with a marginal gain of seven points at 24,336.
- Investors are cautious due to geopolitical tensions and potential tariffs.
- Key resistance for Nifty is at 24,460; support at 24,050.
- Broader market indices saw slight gains, with MidCap up 0.2%.
Mumbai, April 29 (NationPress) The domestic equity benchmark indices experienced a tumultuous trading session on Tuesday, characterized by stock-specific movements amidst ongoing geo-political tensions.
The Sensex commenced the day on a positive trajectory, gaining nearly 180 points to reach 80,396, and peaked at an intra-day high of 80,661. However, it soon retraced its gains, falling into negative territory, hitting a low of 80,122, which was down by 539 points from its zenith.
Despite these fluctuations, the Sensex managed to bounce back and concluded the session with a modest gain of 70 points or 0.1 percent, settling at 80,288.
In a similar vein, the Nifty opened positively at 24,370 and reached an intra-day high of 24,457 early in the trading hours.
Yet, as selling pressure mounted at elevated levels, the index dipped to an intra-day low of 24,290. Ultimately, it wrapped up the trading day with a slight uptick of seven points, finishing at 24,336.
Investors remained cautious due to uncertainties regarding the potential ramifications of US President Donald Trump’s tariffs, as stated by Sundar Kewat from Ashika Institutional Equity.
He added that market participants are closely watching forthcoming corporate earnings and key economic indicators from Wall Street to gauge the broader effects of these trade measures on corporate performance and economic momentum.
Among the major gainers were Tech Mahindra, Eternal (formerly Zomato), HCL Technologies, Bajaj Finserv, Infosys, and TCS, all rising between 1 to 2 percent.
Conversely, UltraTech Cement and Sun Pharma both saw declines of 2 percent each, while Kotak Mahindra Bank, NTPC, SBI, and Nestle India also faced losses.
In the broader market context, the BSE MidCap index climbed by 0.2 percent, and the SmallCap index gained 0.1 percent.
Sector-wise, both the BSE IT and Capital Goods indices rose by 1 percent each, while the Metal index fell by 1 percent, and both the Power and Bankex indices declined by 0.5 percent.
Hrishikesh Yedve from Asit C. Mehta Investment Intermediates Ltd. (a Pantomath Group Company) noted that technically, the Nifty formed a shooting star candle on the daily chart, indicating selling pressure at elevated levels, with 24,460 serving as a short-term resistance.
“If it sustains above this level, it could trigger a rally towards 24,800–24,850. Conversely, critical support is found at the 200-Day Simple Moving Average around 24,050, followed by 23,850. Traders should keep an eye on these levels for potential trading opportunities,” he remarked.
Point of View
It is evident that the fluctuations in the equity markets reflect broader economic uncertainties, particularly regarding geopolitical tensions and trade policies. Investors must navigate these complexities with caution, focusing on fundamental indicators and corporate performance to make informed decisions.
NationPress
01/05/2025
Frequently Asked Questions
What caused the volatility in the stock market on April 29?
The volatility was largely attributed to geopolitical tensions and concerns over potential tariffs imposed by the US, which led to cautious trading among investors.
Which stocks were the major gainers and losers during this trading session?
Major gainers included Tech Mahindra, HCL Technologies, and Infosys, while losers were UltraTech Cement and Sun Pharma, both declining by 2 percent.
What are the critical resistance and support levels for Nifty?
The critical resistance level for Nifty is 24,460, while key support is found at 24,050 and 23,850.
How did the broader market indices perform?
The BSE MidCap index increased by 0.2 percent, and the SmallCap index saw a gain of 0.1 percent.
What should investors watch for going forward?
Investors should monitor upcoming corporate earnings and crucial economic data from Wall Street to gauge market trends and potential impacts on stock performance.
