Market Wrap

Indian equity markets started the week on a weak note, with the Nifty 50 falling 0.70% to close at 23,383, extending its losing streak to a fourth consecutive session. After opening marginally higher, the benchmark quickly lost momentum and remained under pressure throughout the day, eventually settling near its intraday low as investors continued to book profits following the recent market rally.

The broader market failed to draw support from positive global cues, even as major Asian and European indices traded in the green. Concerns over earnings momentum, uncertainty surrounding global growth, and caution ahead of key economic events kept risk appetite subdued. Selling pressure was visible across several sectors, contributing to the market's overall weakness.

Despite the broader decline, IT stocks emerged as a bright spot, with the sector gaining more than 2% as investors rotated into defensive growth names. Market participants also remained focused on developments in the global economy, including upcoming U.S. economic data, central bank commentary, and trade-related discussions, while movements in commodity prices and bond yields continued to influence sentiment.

What's Ahead

Investors will now turn their attention to upcoming macroeconomic data releases, corporate earnings updates, and foreign institutional investor (FII) activity for fresh market direction. Global developments, particularly U.S. economic indicators and policy signals from major central banks, are likely to remain key drivers of sentiment in the near term.

From a technical perspective, Nifty's ability to defend important support levels will be closely watched. While IT stocks could continue to attract interest amid global uncertainty, the broader market may remain stock-specific until stronger earnings visibility or positive economic surprises help improve investor confidence.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its losing streak to a fourth consecutive session, closing at 23,382.60 after failing to hold early gains. The index continues to trade under pressure amid persistent FII outflows, rising crude oil prices, and geopolitical uncertainty, while the RSI drifting toward the 40 mark signals weakening momentum and a loss of bullish strength. Technically, the index remains vulnerable as long as it stays below the immediate resistance zone of 23,574–23,695. On the downside, support is placed at 23,183, followed by 23,063. A decisive break below these levels could trigger further weakness, while a move above resistance may help stabilize sentiment and encourage short-covering.

Bank Nifty

The Nifty Bank index witnessed broad-based selling across both private and PSU banks, ending 1.10% lower at 53,643.10. The index formed a weak closing structure after failing to sustain its opening gains, reflecting continued caution in the banking space. Momentum indicators remain subdued, with the RSI slipping toward 40, suggesting fading bullish momentum. Technically, immediate support is placed at 53,016, followed by 52,614. As long as the index remains below the resistance zone of 54,315–54,717, the trend is likely to remain weak. A sustained move above resistance could revive buying interest, while a breach of support may accelerate downside pressure.

Nifty Financial Services

The Nifty Financial Services index closed at 25,008.45, marking a sharp decline of 1.36% amid weakness across NBFCs, insurers, and lending-focused financial stocks. The sharp deterioration in market breadth, with only one advancing stock against nineteen decliners, highlights the extent of selling pressure within the sector. Technically, the index remains under pressure and is approaching a critical support zone near 24,709–24,524. Failure to hold these levels could result in deeper correction, whereas any recovery attempt is likely to face resistance around 25,308–25,493. The near-term bias remains cautious unless the index reclaims and sustains above its immediate resistance levels.

Sensex

The Sensex declined 508.40 points to close at 74,267.34, as weakness in FMCG, financials, autos, and infrastructure stocks offset gains in select IT counters. The benchmark continues to exhibit a corrective bias, with sellers maintaining control despite pockets of sectoral resilience. Technically, the index is trading close to an important support area of 73,679, followed by 73,315. Holding above these levels will be crucial to prevent a deeper pullback. On the upside, resistance is placed at 74,856 and 75,220, where fresh selling may emerge. The overall trend remains cautious in the short term, with sustained buying required above resistance levels to improve market sentiment.