Stock Market Opens On A Cautious Note As Global Technology Worries Weigh On Dalal Street, Sensex Dips 65 Points And Nifty Slides Below 23,750 Despite Strong FII Comeback

Mumbai’s stock markets commenced cautiously on Wednesday, November 4, 2023, as global technology apprehensions cast a shadow over investor confidence. The BSE Sensex commenced at 76,853.11, slipping 64.74 points or 0.08 percent. Its counterpart, the NSE Nifty, began at 23,742.25, slipping 68.60 points or 0.29 percent. Despite a significant rally in Dalal Street, the Sensex climbed 1,225 points to 76,918, while the Nifty broke 23,800 amid earnings optimism and FMCG purchasing activity.

However, certain sectors experienced selling pressure, with Nifty Consumer Durables, Nifty Realty, and Nifty IT contracting up to 0.79 percent. Additionally, metal, energy, private banking, and PSU banking indices declined. Conversely, healthcare and pharmaceutical equities displayed resilience, with Nifty 500 Healthcare, Nifty Healthcare, and Nifty Pharma indices increasing up to 0.23 percent.

Foreign institutional investors (FIIs) demonstrated renewed enthusiasm for Indian equities, having invested ₹18,661 crore across five of the preceding six trading sessions. The Nifty 500 Healthcare, Nifty Healthcare, and Nifty Pharma indices outperformed the broader market, buoyed by strong performance from healthcare and pharmaceutical shares.

Technical indicators suggest that Nifty remains on track for recovery, trading above its 50-day exponential moving average near 23,196 and showing positive momentum with an RSI of 66.59. The put-call ratio improved to 1.30, indicating supportive derivatives positioning. Bulls tightened their grip on D-Street, with the Sensex surging over 600 points to 76,358 and the Nifty crossing 23,600.

Analysts identified immediate Nifty support between 23,500 and 23,600, with resistance around 24,000–24,200, and the 200-day exponential moving average near 23,904 as an intermediate hurdle. US equities closed higher in the prior session, buoyed by a resurgence in artificial intelligence-related technology shares. However, mixed Asian market trends and concerns over technology valuations kept Indian investors on edge.

Analysts believe that improving corporate earnings, attractive large-cap valuations, and renewed foreign investment could bolster the market’s recovery.