Benchmark stock market indices closed higher on a volatile trading day, with mixed performances across sectors. The S&P BSE Sensex gained 226.85 points to close at 76,759.81, while the NSE Nifty50 added 86.40 points, ending the session at 23,249.50. This fluctuation was mainly driven by volatile movements during the day, where the indices initially showed a steady start, followed by an afternoon dip, only to recover strongly in the final hour of trade.
Aditya Gaggar, Director of Progressive Shares, pointed out that the word expiry often brings volatility to the markets, and it was visible during this session as well. He observed that the index showed a steady start before trending upwards, oscillating within a defined range throughout the session. However, the sharp decline in the afternoon wiped out all earlier gains, and it was only during the final hour that the market bounced back. Gaggar further stated that the Nifty50 ended the day with a solid gain of 86.40 points, closing at 23,249.50, helped by a strong recovery toward the end.
Bharat Electronics Limited (BEL) stood out as the top performer on the Nifty50, surging by an impressive 4.87%. This was followed by Power Grid Corporation of India, which rose by 2.80%, and Hero MotoCorp, which displayed positive momentum with a 2.76% increase. Bharti Airtel also showed solid growth, climbing by 2.63%. Cipla rounded off the list of top gainers, gaining 2.53% in the session. These gains in the aforementioned stocks helped support the overall index despite broader market volatility.
On the other hand, certain stocks faced heavy selling pressure, contributing to the overall mixed market performance. Tata Motors saw the most significant losses, dropping 6.98%. Indian Hotels Company also witnessed substantial declines, falling by 5.00%, and Adani Enterprises lost 3.05%. Other notable decliners included Shriram Finance, which fell 2.29%, and Bajaj Finserv, which ended the day with a loss of 2.26%. These declines in key stocks played a significant role in the overall market's volatility.
Ajit Mishra, Senior Vice President of Research at Religare Broking Ltd, mentioned that sectoral performance remained mixed, with realty, energy, and pharma sectors outperforming while IT, media, and auto sectors lagged behind. This divergence in sectoral performance is something investors often watch closely as it signals where market strength is concentrated. Mishra also noted that while the broader indices like the Nifty Smallcap100 ended with modest gains of 0.12%, the Nifty Midcap100 saw a slight dip of 0.01%, indicating that market sentiment remained cautious and choppy.
The India VIX, which measures volatility, rose by 6.70%, pointing to increased nervousness among traders and investors. With the Union Budget 2025 approaching, market participants are bracing for potential fluctuations, as the budget announcements often lead to market reactions depending on fiscal policy expectations. Mishra explained that the Nifty index is facing resistance around the 23,300 level, particularly the 20-day Exponential Moving Average (EMA). A decisive close above this level would be essential for the index to continue its recovery trajectory. Without a clear breakout, the index may face renewed pressure, likely pushing the Nifty back towards the 23,000–22,700 zone.
VLA Ambala, Co-Founder of Stock Market Today, also offered advice to market participants, suggesting caution in the current volatile environment. He emphasized the importance of hedging short positions, particularly given the potential for continued market fluctuations in the short term. Ambala further forecasted that Nifty could find support in the 23,050 to 22,920 range and face resistance between 23,320 and 23,460 in the next session. In contrast, Bank Nifty is expected to find support between 49,000 and 48,550, with resistance levels ranging between 49,700 and 54,850. These support and resistance levels will be critical for traders to monitor as the market navigates through this uncertain phase.
Overall, the session was a reminder of how quickly market sentiment can shift, with significant movements on both the upside and downside. As volatility remains high and the Budget draws closer, investors are advised to stay vigilant and rely on selective stock picking while implementing robust risk management strategies. Given the uncertain nature of the current market, both traders and long-term investors alike will need to be cautious, as the economic and policy developments of the next few weeks could significantly impact the market's direction.
