The Nifty 50 index has shown resilience with a two-day upward movement, closing at its peak on Friday despite trading within a 150-point range. However, this rally is set to face a significant test in the coming week as two major Initial Public Offerings (IPOs) open simultaneously, vying for investor attention.

IPO Bonanza

The market is bracing for an influx of new offerings totaling ₹27,107 crore:

These IPOs will compete for investor funds on Tuesday, potentially impacting market dynamics.

Nifty's Technical Outlook

The Nifty is approaching a critical juncture:

• Current approach: 24,900 mark
• Key resistance levels: 25,017 and 25,113
• Immediate support: 24,730-24,600

Technical analysts suggest that these levels could play a crucial role in determining the index's short-term trajectory.

Banking Sector Strength

The Nifty Bank index has demonstrated notable strength:

• Four-day winning streak following Reserve Bank of India policy announcements
• Nearly retraced its entire decline from September highs

This performance indicates renewed investor confidence in the banking sector.

Corporate Earnings in Focus

TCS (Tata Consultancy Services) is scheduled to announce its quarterly results on Thursday. Investors will be watching closely, particularly in light of:

• Ongoing visa-related issues
• Recent reports of layoffs

The tech giant's performance could provide insights into the broader IT sector's health.

Market Sentiment

Despite the positive momentum, the market faces several tests:

1. Absorption capacity for the large IPOs
2. Technical resistance levels for the Nifty
3. Corporate earnings, starting with TCS

Investors and traders should monitor these factors closely as they navigate the market in the coming week.

The Indian stock market has experienced a significant downturn, with the Nifty 50 index retreating 5.5% from its all-time high of 26,277.35. However, a recent report from SAMCO Securities reveals that the broader market has faced even steeper declines, painting a more sobering picture for retail investors.

Widespread Losses Across Listed Stocks

According to SAMCO Securities' analysis of 750 top listed stocks:

• 485 stocks (64.7%) posted negative returns
• 245 stocks (32.7%) managed to deliver gains
• The median return across all stocks was -11.56%
• The average return stood at -6.25%

These figures underscore a market environment where losses were more prevalent and severe than the Nifty 50's performance might suggest.

Significant Value Erosion

The report highlights the extent of value destruction in the market:

• 254 stocks (33.9%) lost over 20% of their value
• In contrast, 103 stocks (13.7%) gained more than 20%

This disparity indicates a challenging period for investors, with a substantial portion of the market experiencing deep declines.

Underperformance of Broader Indices

The pain extended beyond large-cap stocks, with broader market indices showing even greater weakness:

• Midcap, smallcap, and microcap indices underperformed the Nifty
• These indices saw declines in the range of 8-9%

Impact on Retail Portfolios

SAMCO Securities noted that retail investors, who typically have broader market exposure, likely faced significantly deeper losses than the headline Nifty 50 index performance would indicate. This observation suggests that many individual investors may have experienced portfolio declines well into double-digit percentages.

Market Implications

The divergence between the Nifty 50's performance and the broader market underscores the importance of diversification and careful stock selection. It also highlights the potential risks associated with investments in smaller companies during market downturns.

As the Indian stock market navigates these challenging conditions, investors may need to reassess their strategies and risk management approaches to better weather such widespread market declines.