Market Wrap

Indian equities started September on a cautious footing, with the Nifty opening gap-down and slipping below key support levels before buying around the crucial 24,000 mark helped the index recover much of its early decline. The Nifty closed at 24,080, down 0.39%, as profit-booking weighed on the broader market and strong participation from large-cap stocks remained limited.

Private banks provided some support, helping contain the downside, while MSCI rebalancing contributed to stock-specific volatility and elevated trading activity toward the close. On the macro front, India’s Q1FY26 GDP growth of 7.8%, ahead of expectations, provided a positive fundamental signal and highlighted the resilience of domestic economic activity.

However, the market remains vulnerable to external risks. Renewed US-Iran tensions, uncertainty over US tariffs on Indian exports, global cues, crude oil prices and continued FII caution could restrict the upside. Overall, the session reinforced a cautious, range-bound setup, with 24,000 emerging as an important near-term floor.

What's Ahead

Tuesday’s weekly expiry is likely to keep volatility elevated. The Nifty faces immediate resistance at 24,150–24,200, followed by 24,260, while 24,000 remains the key support level. A sustained move above 24,200–24,260 would improve the near-term setup, while failure to reclaim this zone could leave the index vulnerable to renewed selling.

Traders will track global markets, crude oil, FII flows and developments around US tariffs for directional cues. Prime Minister Narendra Modi’s participation at the SCO Summit in Tianjin and any developments involving India’s diplomatic and trade relationships will also remain on the radar.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 closed at 24,080.40, down 0.39%, after opening weak and slipping to an intraday low of 23,993.60 before recovering from the crucial 24,000 zone. The decline was accompanied by broad-based selling and weak market breadth, with 30 stocks declining against 20 advancing, while the RSI slipping below 50 points to weakening near-term momentum. The index faces immediate support at 23,967, followed by 23,897, while resistance is placed at 24,194 and 24,264. The near-term setup remains cautious, with sustained buying above 24,194–24,264 needed to revive positive momentum, while a break below 23,967 could expose the index to further downside.

BankNifty

The NIFTY Bank outperformed the broader market, gaining 528.65 points (0.92%) to close at 58,024.95, after recovering from an intraday low of 57,187.35 and closing at the day’s high. Positive breadth, with 9 stocks advancing against 5 declining, along with the RSI moving above 55, indicates improving bullish momentum. The index now faces resistance at 58,266, followed by 58,416, while immediate support is placed at 57,783 and 57,634. Holding above the 57,783–57,634 support zone could keep the short-term bias positive, with a sustained breakout above 58,266 potentially opening the way toward higher levels.

NIFTY FINANCIAL SERVICES

FINNIFTY ended almost flat at 26,293.65, gaining 7.15 points (0.03%), as strength in select private banks and financial stocks offset weakness in PFC, Muthoot Finance and Bajaj Finance. Market breadth remained mildly positive, with 11 stocks advancing against 9 declining, but the index continues to trade within a relatively narrow range. Immediate support is placed at 26,162, followed by 26,080, while resistance lies at 26,426 and 26,507. The near-term outlook remains range-bound, with a sustained move above 26,426–26,507 required to strengthen the bullish setup, while a break below 26,080 could increase selling pressure.

Sensex

The BSE SENSEX declined 307.24 points (0.40%) to close at 76,957.27, weighed down by weakness in heavyweight stocks, while unfavourable breadth of 20 decliners against 10 gainers reflected the broader selling pressure. The index remains below its immediate resistance levels of 77,314 and 77,535, while support is seen at 76,600, followed by 76,380. The near-term technical setup remains cautious, and the index needs to reclaim 77,314–77,535 to regain upward momentum; failure to hold 76,600 could lead to further weakness toward the next support zone.