Stock market sees decline at closing amid pessimism
Sep 28, 2023
Mumbai (Maharashtra) [India], September 28 : The stock market, which had witnessed an upbeat start during the day, took a downturn as the trading session concluded on Thursday.
The Sensex, after reaching the week's high, closed 610.37 points down at 65,508.32, while the Nifty concluded with a decline of 192.90 points, settling at 19,523.55. The Nifty saw 8 advances and 42 declines among its constituent companies.
Among the noteworthy gainers in the Nifty were LT (Larsen & Toubro), Bharti Airtel, ONGC, Coal India, and Power Grid. Conversely, Tech Mahindra, Asian Paints, LITMindtree, M&M (Mahindra & Mahindra), and Wipro found themselves among the top losers at the closing bell.
It was an overall challenging day for Indian markets, with the majority of stocks dipping into the red. The market exhibited a sense of pessimism as investors awaited cues from the Federal Open Market Committee (FOMC) meeting.
During today's trading session, the market tested critical support levels around 19,500 points and touched a low of 19,492. Although the market managed to close above 19,500, the candlestick pattern on the Nifty charts appeared bearish. This suggests a need for investors to exercise caution in the current market environment.
Varun Aggarwal, founder and managing director, Profit Idea said, “Today market tested crucial bull levels of 19500 and made a low of 19492. Even though the close was above 19500 but Nifty candle pattern is quite bearish”.
The critical support level for bulls now stands at 18,887 points. Considering today's closing and bearish sentiment, further market declines seem likely. A shift towards a bullish outlook will require Nifty to climb above 19,767 points.
Today's trading session witnessed significant drops in stocks like Tech Mahindra, Asian Paints, Divis Lab, HDFC Life, and Britannia.
“It will be wise for traders to trade in risk-defined strategies. Investors should look to pick good quality stocks on dips. Selected large, mid and small-cap companies will be available at good discounts for the long term. Be selective and don’t look to jump and buy in hurry”, said Aggarwal.
Traders are advised to adopt risk-defined strategies, while investors may consider acquiring high-quality stocks during market dips.
The current market conditions may offer attractive discounts on selected large, mid, and small-cap companies for long-term investors. Caution and selectivity are advised, with a reminder not to rush into buying decisions.
