Market Tugs Of War: Sensex & Nifty End Flat as Profit-Takers Swoop In

The Indian stock market concluded Tuesday's session on a flat note as profit-taking activities dampened the performance of both major indices, the BSE Sensex and NSE Nifty. At the closing bell, the Sensex registered a decline of 150.68 points, settling at 84,628.16. Meanwhile, the Nifty50 lost 29.85 points, closing at 25,936.20.

The downward trajectory was led primarily by setbacks in the Consumer and Information Technology sectors, while metal stocks gained momentum, buoyed by optimism regarding a potential trade agreement between the US and China. In contrast, PSU banks witnessed a rise following speculation about government plans to elevate the foreign institutional investment threshold. Consequently, the Nifty Metal index emerged as the session's top sectoral performer with a gain of 1.23%, closely followed by the Nifty PSU Banks, which climbed 1.21%. Conversely, sectors such as Nifty Realty and Nifty CPSE topped the decliners' list.

Individual stock movements saw JSW Steel and Tata Steel at the forefront of gainers, whereas Bajaj Finserv and Trent topped the list of laggards. Despite the mixed session, broader market indices showed resilience, outpacing their larger counterparts. The Midcap Index experienced a marginal decline of 0.02%, and the Smallcap Index posted a slight gain of 0.02%. Sudeep Shah of SBI Securities noted the formation of a small-bodied candle on the daily Nifty chart with a minor upper shadow and a pronounced lower shadow, reflecting market indecision.

Looking forward, Nifty faces an immediate challenge around the 26,000-26,050 range, a hurdle it has struggled with in recent sessions. Furthermore, the advance-decline ratio favored bears, with 274 out of the Nifty 500 stocks closing in the red, indicating widespread selling pressure. Shah projected short-term resistance at the 26,050-26,100 zone, while pointing to the strong support level at 25,800, which effectively cushioned the day's decline. Praveen Dwarakanath of Hedged.in remarked on the index's robust position along the upper Bollinger band on the weekly chart and anticipated further upward movement, as signaled by momentum indicators.

Outlook on market dynamics also came from Siddhartha Khemka of Motilal Oswal Financial Services, who expressed optimism for a firm market trajectory, driven by supportive global cues, macroeconomic data, and domestic Q2 earnings.