Indian stocks declined on Friday amid persistent metal and banking sector selling, with traders eyeing support levels around 24,300-24,400 amidst cautious trading influenced by global risk appetite and crude oil fluctuations.
Indian shares drifted lower on Friday as early gains in global risk appetite failed to offset selling in metals and banks, with the Nifty 50 slipping below 24,400 and the Sensex also opening weaker. The Hindu BusinessLine reported that the Nifty fell to 24,319.60 by 9.28 am, while the Sensex dropped to 77,774.69, leaving the market stuck in a narrow consolidation band that traders have been watching for several sessions.
Metal names were among the main drags, with Hindalco and Tata Steel both lower, while TMPV was the sharpest Nifty loser in early trade. Select defensive and healthcare counters offered some support, led by Apollo Hospitals, alongside gains in Adani Ports, Cipla and Wipro. The broader tone reflected continued caution at higher levels even as overseas markets improved.
Market strategists quoted by The Hindu BusinessLine said crude oil remains a key variable for Indian equities. V K Vijayakumar of Geojit Investments said the earlier attempt to break out above the upper end of the range was derailed by a jump in oil prices, though he added that Brent’s retreat below $87 was mildly supportive. In separate commentary to Mint and in Geojit research notes, Vijayakumar has also said investors should keep return expectations in check, with higher crude potentially shaving as much as 4% off earnings growth and valuation and weak profits still limiting the scope for a sustained rally.
Derivatives data pointed to a market waiting for direction rather than a sharp move. India VIX eased, the put-call ratio hovered close to balance and option positioning suggested support around 24,300 to 24,400, with resistance near 24,500. Kotak Securities’ Shrikant Chouhan said traders should look for buying interest in that support zone and see a convincing move above 24,500 as the trigger for a bullish continuation, while Bajaj Broking Research said a breakout above 24,700 to 24,800 would be needed to confirm a broader uptrend. Foreign investors remained net sellers on August 13, but domestic institutions provided strong support, helping offset the outflow.
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