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Nifty, BankNifty, Sensex Face Headwinds Amidst Mixed Sectoral Signals

By Mandar in Indian Market Insights —

Indian Market Summary

Indian markets experienced a downturn today, extending the recent negative trend. The Sensex fell by over 300 points, and the Nifty slipped below the 25,100 mark for the fourth consecutive session.

  • Persistent foreign fund outflows contributed to the cautious market sentiment.
  • Concerns over U.S. visa restrictions added to the market pressure.
  • The BankNifty also declined, mirroring the cautious financial sector.

Sectoral Performance

The market showed varied sectoral performance:

  • Financial and IT stocks led the losses.
  • The metals sector, especially gold and silver, showed strong gains.

Precious Metals Surge

Gold and silver prices rose significantly:

  • Gold reached lifetime highs, supported by a 25 basis points Fed rate cut and expectations of further easing.
  • A weaker rupee and a subdued dollar index also supported gold's rise.
  • Silver hit its strongest level in nearly 15 years, due to strong safe-haven buying and ETF inflows.

Renewable Energy Highlights

The renewable energy sector saw a positive development:

  • Vikram Solar secured a significant 336 MW module supply order from L&T Construction.
  • This highlights growth opportunities within a cautious market.

Technical Analysis

Key technical levels to watch:

  • Nifty: Support near 25,000.
  • Gold: Supports at $3,715-$3,685 and Rs 111,670-Rs 111,380; Resistance at $3,775-$3,790 and Rs 112,650-Rs 112,900.
  • Silver: Support at $43.40-$43.00 and Rs 132,450-Rs 131,750; Resistance at $44.00-$44.30 and Rs 134,850-Rs 135,600.

Key Actions and Considerations

  • Monitor Nifty's ability to maintain the 25,000 support level amidst ongoing foreign fund outflows.
  • Watch financial and IT sectors due to increased volatility related to U.S. visa issues.
  • Consider exposure to precious metals due to their continued rally as safe havens.
  • Track developments in renewable energy stocks like Vikram Solar for sectoral growth prospects.
  • Monitor RBI intervention and rupee stability, which impact currency-sensitive sectors.

Overall Market Outlook

Market sentiment remains cautious due to negative pressures from foreign outflows and global uncertainties. Certain sectors such as metals and renewables present selective opportunities.