Sensex takes a sharp dip as profit booking hits key sectors
The Indian stock market witnessed a volatile trading session today, with the BSE Sensex sliding below the 84,500 mark. After opening on a slightly positive note, the index quickly turned red as traders began booking profits following two days of strong gains.
By the end of the session, the Sensex was seen around 84,476, down nearly 13 points, reflecting a mild yet psychologically significant correction. The 5-minute chart shows a steep decline from the intraday high of 84,522, followed by multiple failed attempts to hold above 84,600, confirming short-term resistance at that level.
Market tone turns cautious before weekend trade
Traders seemed hesitant to carry fresh positions ahead of the weekend. The market mood was also weighed down by mixed global signals as Asian indices traded lower amid renewed concerns over oil prices and U.S. Treasury yields.
“After a strong mid-week rally, the Sensex faced natural resistance near the 84,600 zone. We’re seeing healthy profit booking, which is not necessarily negative. As long as 84,300 holds, the trend remains constructive,” said Ravi Mehta, a senior market analyst at Mumbai-based brokerage ProStocks Research.
He added that the recent dip could attract short-term buyers if global sentiment stabilizes.
Technical analysis: support zones and next moves
The 5-minute candlestick chart clearly indicates a short-term downtrend forming after the index failed to sustain higher levels. Each bounce attempt met selling pressure, creating a series of lower highs. The immediate support zone lies between 84,300 and 84,200, while resistance remains firm at 84,600–84,700.
According to technical traders, a decisive move below 84,300 could trigger further downside towards 83,900, while a rebound above 84,700 may bring the bulls back into action. The Volume SMA indicator also shows a decline, hinting at reduced participation from institutional investors.
“Today’s movement was more technical than fundamental,” noted Shilpa Rane, independent market strategist. “Retail traders were cautious, and intraday volatility was high. However, the long-term structure still looks positive if global cues don’t worsen.”
Broader market and sector performance
Broader indices such as Nifty Midcap and Smallcap showed mixed trends. Banking and IT stocks led the decline, while select FMCG and auto names managed to stay resilient. Heavyweights like HDFC Bank, Infosys, and Reliance Industries saw mild corrections, adding to the Sensex pressure.
On the other hand, defensive sectors such as healthcare and utilities attracted mild buying as investors sought safety ahead of the weekend.
Global market influence and investor sentiment
Globally, market sentiment was cautious after U.S. Federal Reserve officials hinted at maintaining a tight stance on interest rates. Asian markets like Nikkei and Hang Seng ended lower, putting additional pressure on Indian equities.
Rising crude oil prices and a modest uptick in U.S. bond yields also added to the cautious tone. Despite this, analysts believe the Indian market remains fundamentally strong, backed by robust corporate earnings and steady domestic flows.
What traders should watch tomorrow
For tomorrow’s (Friday’s) session, traders are advised to monitor the 84,300 support closely. A bounce from this zone could lead to a short-term recovery towards 84,900, while a breakdown may extend losses.
“Given the strong rally earlier this week, today’s pause is healthy,” said Rajesh Kumar, a senior technical analyst at Axis Securities. “If the market opens flat tomorrow and manages to hold above 84,400, we could see short-covering in banking stocks.”
He also warned that volatility might remain high as monthly derivatives expiry approaches next week.
Outlook: consolidation likely before next big move
Overall, today’s correction appears to be part of a short-term consolidation phase. Traders remain watchful of global triggers such as oil movement, U.S. yields, and quarterly earnings from major Indian companies.
In the near term, the Sensex may continue oscillating between 84,200 and 85,000, with momentum-driven trades dominating intraday sessions.
While the broader outlook for Indian equities remains positive, experts suggest maintaining a stock-specific approach and avoiding aggressive positions until clear direction emerges.
As one market veteran summed up: “This is just a breather, not a breakdown. The Indian market has enough liquidity and optimism to bounce back quickly.”