Stock market today: The Indian stock market experienced a significant drop on Monday, with the Sensex and Nifty 50 both declining by over 1% due to widespread selling. The Sensex fell by more than 900 points, while the Nifty 50 dropped below the 23,800 level. Every sector index closed lower, with the Nifty PSU Bank, Metals, Oil & Gas, Realty, and Media sectors suffering the most considerable losses. Additionally, the Nifty Midcap 100 and Smallcap 100 saw declines exceeding 2%. Among the largest losers were Tata Steel, BPCL, and Adani Enterprises, whereas Titan and Bajaj Finance recorded gains.
Market analysts indicated that ongoing negative factors affecting FII flows and some positive domestic developments may influence the market’s trajectory. The external macro environment remains adverse, with the dollar index at 109 and the 10-year US bond yield at 4.62%. The FIIs are expected to continue offloading until bond yields decrease and the dollar stabilizes.
Dr. V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, pointed out that the December auto sales figures suggest that the supposed slowdown in urban demand is overstated. There will likely be a resumption of buying in these robust domestic sectors, which will offer support to the market during downturns.
Asian stock markets showed mixed results after Wall Street emerged from a period of holiday sluggishness, with Tokyo and China’s markets declining. Following an extended traditional holiday, Japan’s finance minister welcomed the New Year as Tokyo’s market resumed trading, with staff dressed in suits and kimonos applauding for good fortune in 2025.
Market Views – Nagaraj Shetti, Senior Technical Research Analyst of HDFC Securities
After witnessing a sharp upmove on 2nd Jan, Nifty 50 witnessed selling pressure from near the hurdle of 24,200 levels over the last couple of sessions. Nifty 50 is near the crucial supports of around 23,900 levels and further fall from here could find strong support around 23,750 levels. Hence, further consolidation/dips could be a buying opportunity. One may expect Nifty 50 to bounce back from the lows and retest overhead resistance of 24,200 in the near term.
Technical Picks: Stocks to buy in the near-term
Buy PNB Housing Finance Ltd at ₹919.50, Target 970, Stoploss 890, Timeframe 1 week.
Buy Narayana Hrudayalaya Ltd at ₹1,331, Target 1,400, Stoploss 1,290, Timeframe 1 week.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
