Market Wrap

Indian equities remained under pressure for the third consecutive session, with the Nifty 50 hovering around its 20-DEMA before a modest recovery from intraday lows lost momentum. The index closed around 24,400, down 0.16%, reflecting continued caution among investors. While broader market participation remained selective, the Chemicals sector stood out as a pocket of relative strength, gaining around 1.37% after finding support near its 20-DEMA. Global markets offered a relatively supportive backdrop, with Asian and European equities trading higher despite a mixed close on Wall Street. However, domestic sentiment remained restrained as investors continued to assess the earnings season, foreign flows and the broader interest-rate outlook. Recent U.S. inflation data has kept expectations around the Federal Reserve's policy path in focus, with upcoming U.S. PPI data likely to influence global yields, the dollar and emerging-market flows.

What's Ahead

Markets are likely to remain sensitive to the upcoming U.S. PPI data, crude-oil movements, FII/DII flows and the direction of global equities. Domestically, the ongoing earnings season should continue to trigger stock-specific volatility. Technically, the Nifty's ability to defend the 24,400 zone and reclaim its 20-DEMA will remain important for a meaningful improvement in sentiment. A broader recovery could emerge if buying extends beyond a handful of defensive and sector-specific pockets. Until then, continued consolidation with intermittent volatility remains the more likely scenario.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 closed at 24,395.85, declining 40.10 points or 0.16%, and remained range-bound for the fourth consecutive session. The index opened at 24,431.60 and moved within a narrow range, touching a low of 24,311.40 before recovering modestly. The RSI has slipped closer to the 50 mark, indicating that momentum is easing and the near-term trend remains indecisive. Weakness across metals, private banks, oil & gas and cement stocks continued to weigh on the index, although positive market breadth provided some support. On the technical front, 24,188 and 24,059 remain the immediate support levels, while 24,604 and 24,733 are the key resistance zones. A sustained move above 24,604 could improve sentiment, whereas a break below 24,188 may increase selling pressure.

BankNifty

The Nifty Bank declined 250.60 points or 0.43% to close at 57,635.25 after opening at 57,799.15 and slipping to an intraday low of 57,548.60. The index remained under pressure in early trade before consolidating within a narrow range, reflecting continued weakness across several private and PSU banking counters. The RSI remains close to the 50 level, suggesting neutral momentum and a lack of a clear directional bias. For the near term, 57,263 and 57,033 are the key support levels, while 58,007 and 58,237 will act as immediate resistance. A move above 58,007 could signal improving buying interest, while a decisive break below 57,263 would weaken the technical setup.

Sensex

The BSE Sensex gained 113.61 points or 0.15% to close at 78,079.96, outperforming the Nifty as strength in capital goods, utilities, IT and consumer stocks offset weakness in financials and oil & gas. The index maintained a relatively firm tone, supported by positive market breadth with 19 stocks advancing against 11 declining. From a technical perspective, 77,460 and 77,077 remain the immediate support levels, while 78,700 and 79,083 are the key resistance zones. Sustained trading above 78,700 would strengthen the recovery setup and could open the way towards 79,083, while a move below 77,460 would indicate renewed selling pressure.

NIFTY FINANCIAL SERVICES

The Nifty Financial Services index declined 98.80 points or 0.37% to settle at 26,327.95, with selling pressure across banking, insurance and select NBFC stocks keeping the index subdued. The index continues to trade in a cautious zone as financial counters remain mixed, although gains in stocks such as SHRIRAMFIN, PFC and CHOLAFIN helped cushion the decline. The immediate technical setup remains range-bound, with 26,088 and 25,940 emerging as important support levels and 26,568 and 26,716 acting as resistance. A sustained move above 26,568 could provide room for a recovery towards higher levels, while a break below 26,088 may invite further downside.