Introduction
The Indian stock market is once again in a state of cautious indecision as benchmark indices Sensex and Nifty settled marginally lower on December 24, 2024. With foreign fund outflows continuing, investors are choosing to play it safe while navigating the volatile trading conditions.
Market Overview
In a session marked by fluctuations, the 30-share Sensex closed down by 67.30 points, settling at 78,472.87. The index oscillated throughout the day, reaching a low of 78,397.79 before the market grounded itself. The Nifty, on the other hand, posted a smaller decline of 25.80 points or 0.11%, closing at 23,727.65.
Global Influences
The day witnessed contrasting global influences, with US markets closing positively, buoyed by tech giants. The Nasdaq and DJIA notched up consecutive rallies, contrasting with the performance of Indian indices. Despite a promising start, Asian markets including the Nikkei could not hold their gains, reflecting ongoing trends of volatility.
Investor Sentiment
Investor sentiment remains tempered, notably with Foreign Institutional Investors (FIIs) offloading equities worth Rs 168.71 crore, while domestic institutions pumped in Rs 2,227.68 crore. This stark contrast underscores the broader market apprehensions about continuous foreign sell-offs amid inconsistent trading volumes.
Technical Destinations
Technically speaking, the Nifty’s support levels are crucial, particularly the 23,500 mark. Analysts suggest that a breach would open the gates for additional selling pressure down towards 23,200–23,000. Conversely, immediate resistance is noted at 24,000, which must be successfully defended for the bearish trend to see any reversal.
Stock Highlights and Sector Watch
In stock-specific news, Aurobindo Pharma received UK approval for its cancer drug, showing promise in the pharmaceuticals sector. Meanwhile, analysts maintain an optimistic outlook on the defence and healthcare sectors, hinting at robust growth potential amid ongoing government support for local manufacturing.
Key Takeaways
- Sensex closed at 78,472.87, down 67.30 points; Nifty finished at 23,727.65, down 25.80 points.
- Investor caution is palpable, amplified by FII selling and mixed global cues.
- Critical support levels are set around 23,500; a drop below this could trigger further declines.
- Sector-specific developments, particularly in pharma and defence, indicate focal points for investors.
