The stock market opened with a positive momentum on Tuesday but faced resistance at the 21,492 level, leading to the end of a three-day gaining streak for the Nifty 50.
Despite a recovery from intraday lows, the barrier at Friday’s high continued to impact the index’s upward movement.
The Sensex opened 15.29 points up at 71,330.88, while the Nifty opened 5.90 points up at 21,424.55. Among Nifty companies, 29 registered advances, while 21 witnessed declines.
Leading the gainers were ONGC, Coal India, Nestle India, Reliance, and Apollo Hospital, while TCS, M&M, Bajaj Auto, HDFC Bank, and Asian Paints were among the top losers.
After a slight negative closing and cooling off technical indicators, Nifty opened positive with a gain of 59 points.
In the previous trading session, both the Sensex and Nifty 50 closed lower, with the Sensex dropping by 168.66 points (0.24 per cent) to 71,315.09, and the Nifty 50 closed at 21,418.65, down by 38 points (0.18 per cent).
Profit-taking was observed amid a weak trend in Asian markets.
Varun Aggarwal, founder and managing director, Profit Idea said, “Despite a recovery from intraday lows, the Nifty 50 faced resistance at the 21,492 level, leading to the end of a three-day gaining streak. The barrier at Friday’s high continued to impact the index’s upward movement”.
Banking stocks, which played a significant role in the Nifty’s recent gains, witnessed profit booking, primarily driven by large private banks.
The lack of support from technology stocks, following a rapid rally on Thursday and Friday, further contributed to the index’s challenges.
In the U.S., the stock market started the week on a positive note, driven by a series of deals. However, Federal Reserve officials cast doubt on the likelihood of aggressive interest rate cuts early next year.
The Nasdaq Composite rose by 90.89 points (0.61 per cent) to 14,904.81, the S&P 500 gained 21.37 points (0.45 per cent) to 4,740.56, and the Dow Jones Industrial Average ended slightly higher by 0.86 points (0.02 per cent) at 37,306.02.
Aggarwal said, “On Tuesday, attention shifted to Japan’s central bank and speculation about its potential move away from ultra-easy monetary policy, while global equities continued to react positively to the prospect of U.S. rate cuts. Asia-Pacific shares, excluding Japan, remained flat, staying just below a four-month high. The Bank of Japan (BOJ) was set to announce its policy decision amid speculation about moving away from negative interest rates”.
Global equities continued to react positively to the prospect of U.S. rate cuts, with Asia-Pacific shares, excluding Japan, remaining flat just below a four-month high.
Oil prices rose on Tuesday, influenced by continued gains from the previous session.
Attacks by Yemen’s Iran-aligned Houthi militants on ships in the Red Sea disrupted maritime trade, prompting companies to reroute vessels.
Investors remain watchful of both domestic and global factors as they navigate market trends and make strategic decisions in the evolving economic landscape.
