Market Slide Intensifies- Nifty 50 Drops As Global Concerns Weigh On Sentiment

Market Synopsis:
Bears took a firmer hold on D-Street as Nifty 50 and Sensex extended their losing
streak on Friday, October 25, marking the longest weekly decline in 14 months and
intensifying a broad-based sell-off. Continuous selling by foreign investors and
underwhelming corporate earnings weighed heavily on sentiment, pushing indices
into a bearish trend just ahead of Diwali 2024. Reflecting broader global economic
uncertainties, the Nifty 50 benchmark slid from 24,854.05 to 24,180.80, a notable
2.7% drop, signaling increased caution among investors. The downturn was sharper
in the mid and small-cap sectors, with Nifty Midcap 150 and Nifty Smallcap 250
tumbling 5.48% and 7.02%, respectively. Concerns around persistent inflation, rising
interest rates, and global economic slowdown added to the cautious sentiment,
impacting sectoral performance and global markets alike.

Friday’s session ended on a weaker note, extending declines to five straight
sessions as investors reacted to disappointing quarterly results, ongoing tensions in
the Middle East, and uncertainty around the upcoming U.S. election, curbing any
strong buying interest. Key sectors, including automotive, banking, consumer
durables, metals, media, and real estate, were among the hardest hit. FMCG stocks
managed to find some stability, while IT and healthcare sectors showed mixed
performance amid the broader market pressure.

Top Gainers:
City Union Bank (10.72%)
COFORGE LTD.   (7.34%)
Max Financial   (6.53%)

Top Losers:
IndusInd Bank (-22.69%)
RBL Bank  (-21.11%)
Indiamart Inter (-19.06%)

Major Market Developments:
●Mcap of 9 of top 10 most valued firms erode by ₹2 lakh crore.
● Paytm share price jumps after NPCI approval to onboard new UPI users.
● Hyundai Motor India shares opened at a discounted price on the BSE and
NSE.
● Shares of Poonawalla Fincorp, the Cyrus Poonawalla Group-promoted
non-banking financial company (NBFC), crashed on Friday after the firm
posted a net loss in the September quarter of the financial year 2024-25.
● Mazagon Dock approved a stock split of 1:2 and an interim dividend of ₹23.19
per share.

FII, DII Activity:
21st October : 
FII- (2261.83) Crore
DII- 3225.91 Crore

22nd October
FII- (3978.61) Crore
DII- 5896.06 Crore

23rd October : 
FII- (5684.63) Crore
DII- 6039.90 Crore

24th October :
FII- (5062.45) Crore
DII-3620.47 Crore

25th October :
FII- (3036.75) Crore
DII- 4159.29 Crore

Technical analysis:
The Nifty Fifty closed at 24,180 by October 25, reflecting a 1.96% decline over the
week and confirming the ongoing downtrend. This consistent downward pressure
saw the index breach the critical 24,750 support level, now acting as resistance, as
selling dominated the market with minimal signs of recovery. This decline reflects
growing caution among investors, as they grappled with negative market momentum
and limited buying interest throughout the week.

From a technical perspective, the breakdown of 24,750 heightens the significance of
the 24,000 level as the next major support, with no notable support below it until
23,000. The Relative Strength Index (RSI) at 28.62 shows the index in oversold
territory, often an indicator of reversal potential. However, given the broader
downtrend, traders should remain cautious. If the Nifty fails to sustain above 24,000
next week, the risk of further declines toward 23,000 increases, potentially
deepening the current downward trend.

In summary, the Nifty Fifty’s 1.96% drop highlights the challenging market
environment, with 24,000 as a critical level to watch for any signs of reversal. Failing
to hold above this level could result in a continued downtrend, reinforcing the bearish
outlook in the near term