Mumbai (Maharashtra) [India], June 4 : The stock market opened on a negative note on Tuesday amid the ongoing trends from the Lok Sabha election.
This downturn comes after the market hit an all-time high on Monday, with significant advances and no losers.
At the opening bell, the Sensex plunged by 1,135.48 points to 75,333.30, while the Nifty dropped by 408.35 points to open at 22,855.55. Among the Nifty companies, only 6 were advancing, and 44 were declining, reflecting widespread caution among investors.
In the Nifty index, Sun Pharma, Divi's Lab, Nestle India, Cipla, and Britannia emerged as the top gainers. Conversely, Adani Ports, Adani Enterprises, Larsen & Toubro (LT), Coal India, and ONGC were among the top losers, dragging the index down.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, provided a technical perspective and said, "Technically, as long as the index is trading above 23,000, the bullish momentum is likely to continue. On the higher side, the index may rise to 23,500, 23,800, or even 24,000 levels. On the other hand, if the index falls below 23,000, it might correct back to 22,800 levels."
He advised investors to take partial profits on long positions around the 23,800 levels. Chouhan also highlighted the performance of the Bank Nifty, which recently surpassed the 51,000 mark and could potentially reach 52,000 levels, with support at 50,500 levels.
Banking and market expert Ajay Bagga weighed in on the market dynamics, emphasizing the importance of the election results said, "Yesterdays strong FII inflow number was commendable, but we expect the next triggers to be the final tally which will contribute to political continuity and stability, then the cabinet composition and then the Union Budget expectations. Valuations are not cheap and we see froth in the markets, which could lead to some selling later in the week."
He added, "Markets have given up more than the gains of Monday on the back of lower than anticipated early trends for NDA . These are still very early trends and markets will wait for more clarity by the afternoon post the initial sell off."
The current market behavior reflects investor anxiety over the election outcomes and their implications for future economic and political stability.
While the markets are grappling with immediate volatility, the overarching sentiment remains cautiously optimistic, provided the indices hold above critical support levels.
Investors are advised to remain vigilant and consider strategic profit-taking to navigate potential fluctuations in the coming days.
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