By Vineet Kumar 
Sensex Drops Over 550 Points from Day’s High, Nifty Loses Steam Near Key Resistance at 24,350
The stock market’s initial enthusiasm, driven by a BJP-led Mahayuti alliance landslide victory in Maharashtra, began to fade as the trading day progressed. Both the Sensex and Nifty, which started the day on a high, lost momentum due to weak corporate earnings and sustained foreign investor selling pressure.
At 1:30 PM, the BSE Sensex stood at 80,024, up 907 points or 1.15%, while the NSE Nifty gained 312 points to trade at 24,219. Despite the rally, both indices retreated from their intraday highs of 80,473 and 24,351, respectively, as profit-booking emerged near key resistance levels.
Nifty Faces Resistance at 24,350
Market experts highlighted significant resistance at the 24,350 level, capping further upside despite early optimism. Manish Sonthalia, Chief Investment Officer at Emkay Investment Managers, warned of broader challenges for the Indian market, citing subdued earnings growth projections and persistent foreign portfolio investor (FPI) outflows.
Sonthalia noted that Nifty’s fair value could be closer to 22,500, considering average earnings growth of just 12% for FY25 and FY26. “The recent 10% correction was largely driven by FPI liquidation,” he said, adding that net FPI outflows in November alone have reached nearly ₹40,000 crore, with cumulative outflows since October amounting to ₹1.54 lakh crore.
Domestic Investors Provide Support
On the brighter side, domestic institutional investors (DIIs) have stepped in to stabilise the market, matching FPI outflows with nearly equal buying volumes. This balancing act has prevented sharper corrections but hasn’t been enough to sustain today’s rally.
Options Data Reflects Cautious Sentiment
The cautious sentiment was evident in the options data, where heavy call writing was observed at the 24,400 strike and significant put writing at the 24,200 strike. These levels now represent immediate resistance and support zones for the Nifty.
Broader Market Remains Positive
While the benchmark indices struggled, the broader market displayed resilience. Advancing stocks outnumbered decliners, with 2,555 stocks in the green against 936 in the red. PSU stocks, which were early gainers, saw some profit booking but continued to attract attention on hopes of increased government spending.
The Road Ahead
For Nifty to sustain any meaningful gains, analysts believe it must decisively break above the 24,350 resistance level. Until then, weak earnings growth, FPI outflows, and global uncertainties are likely to keep the market on edge.
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