Sensex, Nifty end lower amid selling in financial stocks
Mumbai, July 20
Benchmark equity indices ended lower on Monday, weighed down by losses in banking and financial stocks as investors remained cautious amid rising geopolitical tensions between the United States and Iran.
The Sensex declined 443 points, or 0.57 per cent, to settle at 77,708.52, while the Nifty fell 96 points, or 0.39 per cent, to close at 24,238.50.
Commenting on Nifty technical outlook, experts said that the 24,300-24,400 zone continues to be the immediate resistance, with the upper end of this range aligning with the 200-day Exponential Moving Average (EMA).
"A sustained breakout above this zone would strengthen bullish momentum and could pave the way for an advance towards the 24,500-24,600 region," an analyst stated.
"On the downside, 24,100 remains the immediate support level. A decisive breach below this mark may trigger fresh profit booking and expose the index to the 24,000 psychological support," as per the market expert.
Selling pressure was largely concentrated in heavyweight banking and financial stocks, with Axis Bank, HDFC Bank and Maruti Suzuki India emerging as the top losers on the Nifty index.
Despite the weakness in the benchmark indices, the broader market outperformed. The Nifty MidCap index gained 0.6 per cent, while the Nifty SmallCap index ended 0.16 per cent higher.
Among sectoral indices, the Nifty Private Bank and Nifty Financial Services recorded the sharpest declines, reflecting pressure on financial counters.
On the other hand, the Nifty Pharma and Nifty PSU Bank indices ended with the strongest gains.
Experts said that market participants remained cautious through the session as they monitored developments surrounding tensions between the US and Iran, with geopolitical uncertainties keeping investor sentiment subdued.
"On the global front, the conflict between the US and Iran deepened further, with strikes now extending into a ninth day and tensions increasingly centred on the Strait of Hormuz," a market expert noted.
— IANS
Reader Comments
Good time for long-term investors to buy quality pharma stocks. Nifty Pharma is up today, that's a positive sign. 📈 Also, midcaps and smallcaps holding up well shows broader confidence. Don't panic sell!
Bank stocks dragging the market again. HDFC Bank and Axis seem to be underperforming consistently. While I understand market corrections, I wish the regulators would address the underlying issues in the financial sector rather than just letting bears run wild.
I've been investing in Indian markets for 5 years now. The geopolitical risk is real but India's domestic economy is strong. The 200-day EMA zone is a key level to watch. If we break above 24,400, we could see a nice rally. Fingers crossed! 🤞
It's always the same story - foreign geopolitical tensions and our markets take a hit. Meanwhile, local investors like me are just trying to save for our kids' education. 😅 I'm holding my mutual funds and not looking at daily fluctuations. Stay disciplined!
Interesting that pharma is bucking the trend. Might be a defensive play by smart money. For retail investors like me, this is a reminder to keep a diversified portfolio. Midcaps doing well is encouraging though. 🇮🇳
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