Market Wrap

Indian equity markets ended lower on Thursday as cautious global cues and macro uncertainty weighed on investor sentiment. The Nifty 50 closed 0.57% down, hovering just above the 25,800 mark after witnessing sustained selling pressure through the session.

Despite weakness in the broader index, the financial space stood out with broad-based buying across banks and NBFCs. The constructive chart structure in financial stocks suggests signs of accumulation, offering relative stability to the benchmark amid overall market softness.

Overall sentiment remains cautious, with investors showing preference for defensives and financials over high-beta pockets.

What's Ahead

Market participants will now shift focus to:

• U.S. CPI data and Federal Reserve commentary – These will be critical in shaping expectations around interest rate trajectory and global liquidity.

• Domestic macroeconomic data releases – Any surprise in inflation or growth numbers could influence near-term positioning.

• Crude oil price movement – Volatility here may impact inflation expectations and sectoral performance.

• Corporate earnings updates – Stock-specific triggers could drive selective momentum.

Technically, Nifty is hovering near an important support zone. Sustained strength in financials will be crucial for a potential rebound. However, any negative global macro surprise could increase downside pressure.

Institutional Activity

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended its four-session winning streak, closing at 25,807.20 with a sharp 0.57% decline amid heavy IT-led selling and profit booking at higher levels. The index formed a bearish candle on the daily chart after failing to sustain above the 25,900 zone, indicating short-term exhaustion near resistance. Momentum indicators show cooling strength, with RSI drifting toward the 50 mark - a sign of fading bullish momentum. Immediate support is placed at 25,395 followed by 25,137; a decisive break below these levels could trigger extended correction toward lower demand zones. On the upside, resistance is seen at 26,230 and 26,489, and a sustained move above these levels would be required to revive bullish momentum. Near-term bias remains cautious with a sell-on-rise approach likely unless financial stocks provide stronger support.

Bank Nifty

The NIFTY BANK index remained largely range-bound, closing marginally lower at 60,739.75, reflecting consolidation after recent gains. Despite intraday volatility, the index managed to hold mid-range levels, suggesting underlying resilience. RSI continues to hover near 60, indicating that the broader bullish structure remains intact even as short-term momentum pauses. Immediate support lies at 59,800 followed by 59,219, while resistance is placed at 61,679 and 62,261. A breakout above 61,700 could open the door for a fresh leg higher, whereas a breach below 59,800 may weaken sentiment in the short term. Overall structure remains positive, with dips likely to attract buying interest.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index outperformed, gaining 0.38% to close at 28,385.20, supported by strong buying in NBFCs and select banking heavyweights. The index continues to display relative strength compared to the broader market, maintaining a constructive higher-high formation on the daily timeframe. Market breadth remained balanced, suggesting healthy participation within the segment. Immediate support is seen at 27,908 and 27,609, while resistance levels stand at 28,873 and 29,172. A sustained move above 28,873 could accelerate upside momentum toward the 29,200 zone, reinforcing sectoral leadership. The technical setup remains favorable, with financials likely to act as a key stabilizing force for the broader market.

Sensex

The BSE SENSEX declined 0.66% to close at 83,674.92, dragged lower by steep losses in IT majors and select heavyweight counters. The index formed a bearish candle, reflecting distribution at higher levels and mirroring weakness seen in the Nifty. Short-term momentum has softened, with price action suggesting consolidation or mild corrective bias in the near term. Immediate support is placed at 82,272 followed by 81,400, while resistance is seen at 85,091 and 85,963. A sustained break above the 85,000 zone is necessary to resume the broader uptrend; failure to hold above 82,272 could deepen corrective pressure. The near-term outlook remains cautious, with stock-specific action likely to dominate.