This is how analysts read the market pulse:
The main catalyst for the sell-off was the proposed hike in Securities Transaction Tax (STT) on F&O transactions, a move aimed at curbing retail speculation that has overwhelmed the market, said Nandish Shah, vice-president of HDFC Securities.
Wipro, Max Healthcare and TCS stood out as Nifty’s top gainers and defied defeat, Shah noted, adding that BEL, Hindalco and ONGC bore the brunt as biggest losers.
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U.S. stocks closed in the red on Friday as investors weighed President Trump’s nomination of former Federal Reserve Governor Kevin Warsh – widely seen as an aggressive choice – to succeed Chairman Jerome Powell, alongside a string of corporate profits and uncomfortably robust inflation.
The Dow Jones Industrial Average fell 179.09 points, or 0.36%, to 48,892.47. The S&P 500 fell 29.98 points, or 0.43%, to 6,939.03, while the Nasdaq Composite retreated 223.30 points, or 0.94%, to 23,461.82, dragged down by losses in heavyweight technology stocks.
European markets
European shares closed higher on Friday, extending a rally that put the region’s benchmark on course for its longest monthly winning streak since 2021, as investors analyzed a round of corporate earnings and assessed the market implications of President Trump’s nomination of a former Federal Reserve official to lead the U.S. central bank.
The regional index rose 0.6% to 611 and was poised to end January with a 3% gain, marking a seventh straight month of progress. Bank stocks outperformed, rising 1.7%, leading the sector gains. Spain’s Caixabank rose 6.7% after the lender said it expects lending revenues and profits to grow this year and next.
Technical view
Technically, after a sharp intraday dip in the second half of the day, the market has pared some losses, said Shrikant Chouhan, Head Equity Research at Kotak Securities. He added, “From the lows of the day, the market bounced back sharply. On the daily charts, it formed a long bearish candle and is currently trading below the 200-day SMA (Simple Moving Average), which is largely negative.”
We believe that the market texture is volatile in the short term and volatility is likely to persist in the near future, Chouhan said. He added that “level-based trading would therefore be the ideal strategy for day traders. On the higher side, 25,000/81,300 would act as a crucial resistance zone. As long as the market trades below this level, weak sentiment is likely to prevail.”
“On the other hand, the correction wave is likely to continue until 24650-24600/80100-79900. A further downtrend could also continue, dragging the index towards 24500-24300/79600-79000. On the other hand, the market could rise above 25,000/81,300 to 25,200/81900 or 200 days SMA,” Chouhan said.
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Most active stocks in terms of turnover
Hindustan Copper (Rs 5,239 crore), MCX India (Rs 4,621 crore), BEL (Rs 4,430 crore), BSE (Rs 4,243 crore), Vedanta (Rs 3,066 crore), Hindustan Zinc (Rs 2,603 crore) and Anant Raj (Rs 1,891 crore) were among the most active stocks on BSE in value terms. Higher activity in a counter in terms of value can help identify the counters with the highest trading turnover per day.
Most active stocks by volume
Vodafone Idea (Shares traded: Rs 72.57 crore), IFCI (Shares traded: Rs 10.5 crore), BEL (Shares traded: Rs 10.15 crore), Hindustan Copper (Shares traded: Rs 8.8 crore), IRFC (Shares traded: Rs 6.95 crore), Suzlon Energy (Shares traded: Rs 6.78 crore) and YES Bank (Shares traded: Rs 5.72 crore) were among the most actively traded stocks on NSE in terms of volume.
Stocks that show buying interest
Shares of Global Health, Anant Raj, Netweb Technologies, Amber Enterprises, Vardhman Textiles, Action Construction Equipment and IFCI were among the stocks that witnessed strong buying interest from market participants.
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52 Week High
More than 68 stocks hit their 52-week highs today, while 253 stocks fell to their 52-week lows. Oil India, Axis Bank and SBI were among those that hit 52-week highs.
Stocks see selling pressure
Stocks that witnessed significant selling pressure were Hindustan Copper, MCX India, IIFL Finance, Bharat Dynamics, Hindustan Zinc, Angel One and Muthoot Finance.
Sentiment meter bullish
Market sentiment was bullish. Of the 4,309 shares traded on the BSE on Sunday, 2,444 shares saw a decline, 1,699 rose, while 166 shares remained unchanged.
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(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
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