Market Wrap

Indian equities ended on a cautious note, with the Nifty slipping nearly 0.5% to settle near the 25,200 mark. Early optimism faded as traders booked profits following a recent rally. A sharp U.S. H-1B visa development sparked heavy selling in IT stocks, sending the Nifty IT index down almost 3%. Meanwhile, the rollout of GST 2.0 reforms a long-term positive triggered near-term churn in consumption names as investors rotated into other themes. Metals displayed resilience on strong demand, while auto, realty, and consumer stocks traded mixed. Broader sentiment remained defensive, with narrow market breadth and fading follow-through from global cues and GST Council optimism.

What's Ahead

Volatility is likely to spike tomorrow with the weekly F&O expiry, keeping traders alert around key support at 25,153 and 25,045, and resistance at 25,280–25,330. Globally, focus will turn to U.S. August PCE inflation and Q2 GDP data both critical in shaping Fed rate expectations and near-term fund flows into emerging markets. On the domestic front, quarterly earnings, policy headlines, and any updates on India–U.S. trade or visa reforms will be key in deciding whether the current dip stabilises into consolidation or deepens into a broader correction.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Volatility is expected to pick up in tomorrow’s session with the weekly F&O expiry. The index remains sensitive to both domestic and global triggers, with traders eyeing key supports at 25,153 and 25,045, while immediate resistance lies at 25,280–25,330. A sustained break below 25,045 could open the door to deeper consolidation, while a bounce above 25,330 would be needed to reassert bullish momentum.

Bank Nifty

The Bank Nifty closed at 55,284.75, down 0.31%, after moving in a 450-point intraday range. Weakness in mid-tier banks like Federal Bank, IndusInd, and AUBANK weighed on the index, despite selective gains in Axis and Canara Bank. The RSI sits in mid-range, suggesting neutral momentum with no strong bias. Near-term support stands at 54,748 and 54,416, while resistance is seen at 55,821 and 56,153. Traders should brace for swings around the 55,000 psychological zone.

Sensex

The Sensex fell 466.26 points to settle at 82,159.97, dragged by heavy losses in IT majors alongside selling in Reliance and HDFC Bank. Market breadth was weak, with 21 of 30 stocks declining. The index is now testing crucial support levels at 81,424 and 80,969, with resistance at 82,896 and 83,351. A close below 81,400 could turn sentiment more bearish in the near term.

FINNIFTY

The Nifty Financial Services index ended flat at 26,528.4 (+0.03%), reflecting mixed action across its constituents. Gains in insurers such as Muthoot Finance and Cholamandalam Finance offset pressure from HDFC Bank and SBI. The index remains rangebound, with investors awaiting fresh cues for directional clarity.