By Adani Ports

Copyright thehindubusinessline

Markets opened on a weak note Friday morning, with the Nifty 50 starting at 25,410.20 from its previous close of 25,423.60 and trading at 25,336.35, down 87.25 points or 0.34 per cent, at 9.45 am. The Sensex opened at 82,946.04 against its previous close of 83,013.96 and was at 82,687.41, lower by 326.55 points or 0.39 per cent, despite positive global cues following the Federal Reserve’s rate cut.

The benchmark Sensex opened at ₹82,946.04, down from its previous close of ₹83,013.96, while the Nifty opened at ₹25,410.20 against its previous close of ₹25,423.60. Both indices continued their decline in early trade, reflecting profit-booking amid overbought conditions.

“Gift Nifty is treading water, signalling some fatigue for the benchmark index with mild profit booking likely amidst overbought conditions,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd. However, he added that “Nifty bulls are expected to regroup at lower levels following the Fed’s 25 bps cut.”

Among the top gainers on the Nifty 50, Adani Enterprises led with a surge of 3.58 per cent to ₹2,487.90, followed by Adani Ports which gained 1.60 per cent to ₹1,435.40. Shriram Finance rose 1.12 per cent to ₹633.95, while HDFC Life climbed 0.75 per cent to ₹790.45. IndusInd Bank rounded out the top gainers with a 0.67 per cent increase to ₹740.40.

On the losing side, Nestle India declined 1.11 per cent to ₹1,195.70, while Tata Consumer Products fell 1.08 per cent to ₹1,117.10. Bajaj Auto dropped 0.99 per cent to ₹8,985.00, ICICI Bank slipped 0.93 per cent to ₹1,408.50, and HCL Technologies declined 0.91 per cent to ₹1,480.20.

The market weakness comes despite strong global momentum, with all three major US indices hitting fresh record highs after the Federal Reserve’s dovish stance. “In the US, all three equity indices—the Dow Jones, S&P 500, and Nasdaq—scaled fresh lifetime highs, with the Dow crossing 46,100 after the Fed’s dovish stance boosted risk appetite,” noted Ponmudi R, CEO of Enrich Money.

Technical analysts remain cautiously optimistic about the market’s medium-term prospects. “The Nifty 50 is once again testing the downward-sloping trendline near 25,600, the same hurdle it failed to cross at its earlier peak of 25,677,” explained Ponmudi R. He added that “a decisive breakout above this barrier could quickly unleash momentum towards 25,800–26,000–26,500.”

Hariprasad K, SEBI-registered Research Analyst and Founder of Livelong Wealth, highlighted the technical momentum. “Momentum indicators remain constructive, with the RSI (14) at 68.37 suggesting strong buying interest, though its proximity to the overbought zone signals the possibility of a short-term pullback if demand moderates,” he said.

Foreign and domestic institutional flows have shown mixed patterns. While FIIs pulled out ₹1,718 crore from equities this week according to some reports, other data showed FII inflows of ₹366 crore on September 18. Domestic Institutional Investors remained strong supporters, with inflows of ₹3,326 crore on September 18.

“FIIs pulled out ₹1,718 Cr from equities this week, though they remained active in index futures and options—suggesting more hedging than outright bearishness. In contrast, DIIs extended strong support, infusing ₹9,071 Cr, which kept the market buoyant,” said Ponmudi R.

Dr. VK Vijayakumar, Chief Investment Strategist at Geojit Investments Limited, maintained an optimistic outlook. “Market is on an uptrend and is well positioned to set new records soon. Fundamentally, earnings are likely to improve from Q3 onwards,” he stated. He also cited reports of potential US-India trade deals. “There are reports of a US-India trade deal without the penal tariff and lower reciprocal tariff from high government officials.”

The commodities sector faced pressure, with gold and silver extending their decline for the third consecutive day. Rahul Kalantri, VP Commodities at Mehta Equities Ltd, noted that “Gold and silver prices extending their third consecutive daily decline, putting the metal on track for its first weekly loss in a month after strong rebound in the dollar index.”

Crude oil prices also remained under pressure due to demand concerns and a stronger dollar. “Crude oil extended its fall in a highly volatile session amid rebound in the dollar index and the U.S. demand worries,” Kalantri explained.

Despite the morning weakness, analysts recommend a cautious buy-on-dips approach. Amruta Shinde, Technical & Derivative Analyst at Choice Equity Broking, advised that “traders are advised to continue with a cautious ‘buy-on-dips’ approach. Booking partial profits on rallies and maintaining tight trailing stop-losses is recommended to manage risk.”

Published on September 19, 2025