Stock Market Today: Sensex, Nifty End Flat Amid Volatility; Auto and FMCG Stocks Gain

Indian Markets Remain Range-Bound as Volatility Drops

Indian equity benchmarks Sensex and Nifty 50 ended the trading session on February 25 with minimal movement, reflecting a lack of strong directional cues. While select auto and FMCG stocks provided support, IT, metal, and realty stocks witnessed selling pressure.

At the closing bell:

• The Sensex gained 147.71 points (0.20%), closing at 74,602.12.
• The Nifty 50 slipped marginally by 5.80 points (0.03%), ending at 22,547.55.
• The broader market sentiment was negative, with 1,612 advancing stocks, 2,166 declining, and 127 remaining unchanged.

Sectoral Trends: Auto and FMCG Lead, Metals and Realty Underperform

Market performance remained mixed, with select sectors showing strength while others faced selling pressure:

• Gainers: Auto, Consumer Durables, FMCG, and Telecom stocks gained 0.5% each, indicating strong investor interest.
• Losers: IT, Metal, Oil & Gas, Energy, Capital Goods, PSU Banks, and Realty sectors witnessed a decline of 0.5-1%, dragging the overall market sentiment lower.
• The BSE Midcap and Smallcap indices dropped 0.5% each, reflecting weakness in broader markets.

Technical Analysis: Nifty 50 Forms Inverted Hammer, Indicating Potential Reversal

The Nifty 50 index saw a negative opening, traded within a tight consolidation range, and ended flat-to-negative at 22,548.

• On the daily chart, the index formed an inverted hammer candlestick pattern, which typically signals a potential reversal and buying interest at lower levels.
• The immediate support level is at 22,400, and a breakdown below this could trigger further downside pressure.
• On the upside, resistance is seen at 22,700-22,800, and a sustained move beyond this range could signal a fresh rally.

Bank Nifty Analysis: Strong Resistance at 49,650, Support at 47,840

The Bank Nifty index also faced selling pressure at higher levels, closing the session at 48,608.

• The daily chart shows a red candle with a long upper shadow, suggesting profit booking at higher levels.
• Key support: 47,840, where buyers are likely to step in.
• Key resistance: 49,650, which remains a crucial barrier for any upward movement.
• If Bank Nifty fails to hold above 48,000, it could invite short-term selling pressure, while a breakout above 49,650 may trigger fresh buying interest.

Stock in Focus: M&M Gains 3% on Strong Brokerage Calls

Shares of Mahindra & Mahindra (M&M) surged 3%, extending their two-day winning streak after receiving positive ratings from brokerage firms.

• The stock had seen a sharp correction last week, marking its biggest single-day fall in nearly seven months on February 21.
• Concerns over Tesla’s entry into the Indian market had weighed on sentiment, but recent upgrades and bullish outlook from analysts helped the stock recover.
• Strong demand in the domestic auto market and robust sales growth projections are driving renewed investor interest in M&M and other auto sector stocks.

Volatility Index Drops: India VIX Down 5%

The India VIX (Volatility Index) declined 5.03% to 13.72, signaling lower market uncertainty.

• A decline in India VIX indicates that investors are less fearful of sudden market swings.
• However, traders should remain cautious as global economic factors, foreign institutional investor (FII) activity, and corporate earnings will continue to influence market sentiment.

Market Outlook: Key Levels to Watch Ahead of the Holiday Break

The Indian stock market will remain closed on February 26 on account of Mahashivratri.

• Nifty 50 key levels: 22,400 (support) and 22,800 (resistance).
• Bank Nifty key levels: 47,840 (support) and 49,650 (resistance).
• Sectoral rotation will play a major role in upcoming sessions, with auto and FMCG stocks continuing to attract investor interest, while metals and realty stocks may remain under pressure.
• Traders should also monitor global cues, crude oil prices, US market trends, and foreign investor flows, as these factors could drive the next market move.

With lower volatility and a cautious market sentiment, investors may look for stock-specific opportunities instead of broad-based moves in the near term.