Mumbai, November 20 (UITV)- Indian stock market remained closed today, Wednesday due to Maharashtra assembly elections. All segments like equity, derivatives and securities lending and borrowing (SLB) and other market segments also remained closed. This public holiday was declared for the capital market and future-option division. Earlier, the market was also closed on the occasion of Lakshmi Puja on November 1 and Guru Nanak Jayanti on November 15.
Indian stock market witnessed tremendous volatility on Tuesday. Despite the increasing tension between Russia and Ukraine, the market initially showed good growth, but lost its gains due to profit booking in the last hours of trading. Sensex registered a gain of more than 1,100 points, but ended the day with a gain of 239.37 points at 77,578.38. Nifty closed at 23,518.50 with a gain of 64.70 points.
A major reason for the volatility in the market was the new tensions between Russia and Ukraine. There were reports of Ukrainian armed forces launching an ATACMS missile attack on Russian border territory, following which Russia warned of serious consequences. This news increased volatility in global markets and also affected the Indian market.
The market witnessed massive buying in the media sector, where the Nifty Media index gained 2.45 percent. Nifty formed a doji candle pattern on the daily chart, which indicates uncertainty in the market. Experts believe that the 23,780-23,800 level will act as a key resistance zone for the Nifty. On the other hand, the 50-weekly simple moving average may provide short-term support at the 23,300 level.
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On November 19, foreign institutional investors (FIIs) sold equities worth Rs 3,411 crore, while domestic institutional investors (DIIs) bought Rs 2,783 crore on the same day. This indicates that foreign investors are adopting a cautious approach in the market, while domestic investors are showing confidence in the market.
Experts believe that the short-term trend will remain negative until Nifty crosses the 23,800 level. The market needs to hold above 23,800 to gain stability and move further.
The market is facing volatility amid Maharashtra assembly elections and Russia-Ukraine tensions. However, domestic investors’ confidence and buying in key sectors are strengthening the market. The market trend in the coming trading sessions will depend on these factors and global developments.
