Stock Market: Why did the market fall after setting a record, these 5 reasons why the market lost its gains

News Topical, Digital Desk : Today was a day of action in the stock market. Major indexes hit new record highs during trading. However, after reaching record highs, the market experienced pressure, and at one point, the indexes lost all their gains and even slipped into the red. Currently, in the last hour of the market, the Nifty and Sensex are trading around previous levels, oscillating between the green and red. Let's take a look at the reasons why the markets have slipped from their highs.

1) Profit-booking dominated the market at higher levels. After today's gains, traders booked profits at higher levels. The Reserve Bank of India's policy review is due next week, while uncertainty remains regarding the US tariff deal. Strong support at lower levels is also contributing to the market's continued buying strategy on dips. These signals have led to profit-booking in the market. Most sectors have declined after initial gains. Only banking and financial stocks have performed well. 2) Expiry Impact: Thursday marks the monthly expiry of Sensex derivatives, which also impacted trading. Expiry days typically see sharp volatility as trading activity intensifies as the session approaches its close. 3) Technical signals are also driving market action based on chart signals. Prashant Tapase of Mehta Equities, in a Moneycontrol report, said that the market is strong, but gains may be limited in the short term. Earlier, market expert Ashish Baheti had also advised trading with a stop-loss of 26,100. This means that chart signals suggest that profit-booking is preferable to new positions at current levels. 4) Weakness persists in some parts of the market, while smaller stocks are under pressure compared to gains in the Nifty and Sensex. According to Tapase, "Indices are at record highs, but many midcap and smallcap markets are still in the corrective or sensitive zone. Further rally will depend on improving earnings, stabilizing global conditions, and domestic investor participation. In such a scenario, it would be better to focus on specific and strong stocks and not chase unnecessary rallies. This thinking has also been reflected in the market." 5) Rupee Weakness The continued weakness in the rupee has also impacted sentiment. The rupee weakened on Thursday, and the domestic currency is near its record lows. 

What are the future signs? According to Sudip Shah of SBI Securities, significant resistance is currently visible for the Nifty at the 26,250–26,300 level. If the index crosses this level, the Nifty could move towards 26,500 and further towards 26,800. Currently, support for the index is considered to be between 26,100–26,050.

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