Markets pause after strong rally, await clear directional trigger 

Stock market witnessed a range-bound session on Tuesday, with benchmark indices closing marginally lower after a recent robust rally, as investors exercised caution ahead of the monthly derivatives expiry and assessed potential market directions.

The Sensex closed at 80,004.06, down 105.79 points or 0.13 per cent, while the Nifty 50 slipped 27.40 points or 0.11 per cent to settle at 24,194.50. The market breadth remained positive, with 2,277 advances against 1,644 declines on the BSE.

Sector performance was mixed, with digital and IT indices rallying over 1 per cent, while the auto index experienced the most significant decline, losing over 1 per cent. The broader market showed resilience, with smallcap indices gaining nearly 1 per cent.

Top gainers included Shriram Finance (3.26 per cent), Britannia (2.20 per cent), Asian Paints (1.87 per cent), BEL (1.86 per cent), and Infosys (1.61 per cent). Conversely, top losers were Adani Enterprises (-4.02 per cent), Adani Ports (-3.03 per cent), UltraTech Cement (-3.03 per cent), Bajaj Auto (-2.87 per cent), and Sun Pharma (-1.98 per cent).

Market experts highlighted the ongoing consolidation phase. Ajit Mishra from Religare Broking noted, “Nifty’s consolidation is unfolding as expected post-rebound. Banking and IT remain key drivers, but a decisive move beyond 24,350 will require broader participation from other heavyweight sectors.”

Technical analysts provided insights into potential market movements. Tejas Shah from JM Financial pointed out, “Nifty is facing resilience around 24,350 levels. We need to see a decisive close above 24,350 for further strength, or else consolidation is likely to continue in the 24,000 to 24,350 range.”

A notable market development was Vodafone Idea’s shares surging approximately 17 per cent after the Union Cabinet approved waiving bank guarantees for telecom operators for spectrum acquired in auctions before 2022.

Vinod Nair from Geojit Financial Services offered a broader perspective: “FIIs have turned net buyers, breaking a long selling streak, with MSCI rebalancing. With state elections concluded, government focus will shift to execution and budget plans.”

The India VIX, a volatility indicator, marginally rose 0.02 per cent to close at 15.3050, reflecting elevated market uncertainty. Derivatives market analysis showed the highest call open interest at 24,500 and 24,700 strike prices, suggesting potential resistance zones.

Mandar Bhojane from Choice Broking emphasized, “A breakout above 24,500 will indicate bullish momentum, while the 23,300–23,500 zone continues to provide robust support against downside risks.”

Investors are advised to remain cautious and selective, with market experts recommending accumulating quality stocks during dips while maintaining disciplined risk management strategies.

The market’s immediate focus remains on potential directional triggers, with key support levels identified around 23,950 and 23,800, and resistance at 24,350 and 24,500.