On Thursday, Dalal Street began on a weak footing, breaking its recent rally streak as global sentiment turned cautious, particularly due to developments around a US-China trade truce. The Sensex slipped over 500 points, and the Nifty dropped more than 140 points in early trading, indicating a tactical pullback in largecap stocks while midcap and smallcap indices remained resilient—a clear divergence in market breadth.
Key Market Levels (as of 9:47 am):
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Sensex: 80,839.01 (↓516.75 points)
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Nifty: 24,528.25 (↓142.25 points)
What’s Driving the Market?
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US-China Trade Calm: The easing of geopolitical tension between the U.S. and China is being interpreted as a signal for potential FII realignment. Dr. VK Vijayakumar from Geojit suggests a possible short-term pivot from "Buy India" to "Buy China" may emerge, weakening the FII-driven rally in Indian largecaps.
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Consolidation Phase: The market is likely entering a near-term consolidation, with technicals hinting at indecision. A sustained break above 24,770 on the Nifty is necessary to resume the uptrend toward 24,900, while support is seen around 24,550.
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Bank Nifty: Trapped in a flag pattern, with support at 54,560 and resistance at 55,200.
Sectoral and Stock-Specific Action:
Despite the headline indices turning soft, thematic breakouts and sector rotation are keeping investor interest alive:
🔋 Energy:
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Energy index has confirmed a breakout above 35,000
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CG Power and Coal India are showing sustained strength
🏗️ Metals:
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Jindal Steel, SAIL, and Hindustan Copper have broken out of consolidation, signalling momentum continuation
🚄 Railways:
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Stocks like Ircon, RITES, RVNL, and Railtel are showing strong bullish patterns, including symmetrical triangles, channel reversals, and consolidation breakouts
🏦 PSU Banks:
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Union Bank of India has broken out of an Inverted Head & Shoulders, a classic trend reversal pattern
🚗 Auto:
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Exide Industries is nearing a breakout zone after months of consolidation
🛡️ Defence:
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Renewed focus after the Prime Minister’s backing of domestic defence manufacturing. Despite attractive long-term prospects, valuations remain rich—requiring selective entry
Bottom Line:
While the indices may have turned cautious due to global recalibrations and FII hesitancy, the underlying strength in midcap and smallcap segments remains firm. Several sectors—particularly energy, defence, metals, PSU banks, and railway infrastructure—are showing strong technical setups, offering opportunities beyond the largecap space.
