On the last trading day of 2024, Indian equity benchmark indices—Sensex and Nifty—opened in the red, reflecting bearish sentiment and weak global cues. Investors remained cautious as banking and automobile stocks led the decline.
Sensex, Nifty Slide on December 31, 2024 – Preview
Market Snapshot
- Sensex: Opened below 77,900 and traded at 77,884.83 at 9:17 AM, down by 363 points or 0.46%.
- Nifty50: Started above 23,550 and was at 23,553.10, a decline of 92 points or 0.39%.
The subdued performance followed a negative closing on Monday, where both indices faced selling pressure.
Key Technical Insights
Rupak De, Senior Technical Analyst at LKP Securities, noted bearish trends on the daily chart:
- Nifty broke below its recent consolidation zone, trading under the 200-day moving average (DMA), signaling a continuation of negative sentiment.
- Support Level: 23,400
- Resistance Level: 23,870
“The Nifty has remained volatile, oscillating between 23,600 and 23,900. The short-term outlook indicates potential downside risks,” De remarked.
Sectoral and Institutional Trends
- Top Drags: Banking and automobile stocks were among the major losers, mirroring Monday’s trend.
- Institutional Activity on Monday:
- FIIs sold shares worth Rs 1,893.16 crore.
- DIIs purchased shares valued at Rs 2,173.86 crore, showing domestic resilience amidst foreign sell-offs.
Global Market Influence
Weakness in global markets added to the cautious mood:
- US Markets: Monday witnessed declines with the Dow Jones dropping 0.97%, S&P 500 down 1.07%, and Nasdaq sliding 1.19%.
- Asian Markets: S&P 500 futures, Hang Seng futures, and Australia’s S&P/ASX 200 all showed a downward trend, signaling a risk-averse environment.
What’s Driving the Bearish Sentiment?
- Technical Breakdown: The breach of key support levels on the Nifty and Sensex has dampened short-term market outlooks.
- Global Economic Concerns: Weak US and Asian market performances have weighed on domestic sentiment.
- Profit Booking: Year-end profit booking by traders and institutions has contributed to the decline.
Key Takeaways
- Sensex and Nifty opened lower on December 31, 2024, reflecting bearish sentiment.
- Technical indicators suggest volatility with potential downside risks for Nifty at 23,400 support.
- Banking and automobile stocks remain the biggest drags on indices.
- FIIs continued their selling streak, while DIIs maintained a buying momentum.
- Weak global cues, including declines in US and Asian markets, have added to domestic market pressures.
As the Indian stock market navigates the final trading session of 2024, caution remains the dominant sentiment. Technical signals point to a bearish outlook in the short term, with Nifty’s critical support and resistance levels closely watched. Global cues and institutional activity will continue to influence the direction of Indian equity as we transition into 2025.
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