Stock market opens flat, experts believe it will remain volatile in the near term
Oct 11, 2024
Mumbai (Maharashtra) [India], October 11 : The stock market opened flat on Friday, with both the Sensex and Nifty witnessing significant declines during the initial trading hour.
The benchmark Sensex fell by 185.20 points, starting the day at 81,426.21, while the Nifty dropped 51.30 points, opening at 24,947.15.
Among Nifty 50 companies, 18 stocks advanced while 32 stocks registered declines, reflecting a mixed sentiment in the market.
HCL Technologies, Hindalco, JSW Steel, Wipro, and Bajaj Auto emerged as the top gainers, showing resilience amidst the overall downturn. On the other hand, CIPLA, Trent, Asian Paints, YCS, and Power Grid were the top losers, dragging the indices further down.
Soni Patnaik, AVP and Derivatives Research Analyst at JM Financial Services, provided insight into the market dynamics, saying, "Nifty continues to be in the range of 24800 to 25100/150 levels. The new weekly expiry shows highest OI at 25000 straddle with CE showing 1.86 L contracts & PE showing 1.57 L contracts.
"FIIs longs have further dropped to 36 per cent indicating a rise in net shorts. On intraday basis, 24950 holds as an immediate support below which 24800/24750 support can get tested again. For any short covering move, nifty must cross 25300 resistance", added Patnaik.
V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the near-term volatility in the market.
He noted, "Market is likely to remain volatile in the near-term alternating between FII selling and DII buying. Attractive valuations in other markets, particularly in Chinese stocks, will facilitate further selling by FIIs in India since Indian valuations are elevated."
As investors navigate the ongoing volatility, market watchers will be closely observing global factors and domestic cues to gauge the next movement of the indices.
