Market Wrap

Indian equities ended a volatile week on a cautious note. The Nifty, which opened with strong momentum post the extended weekend and tested the 25,150 mark by Thursday, surrendered part of its gains in Friday’s sell-off. Profit booking at higher levels highlighted investor reluctance to chase the rally further. Sector-wise, pharma stocks displayed resilience, standing out as a defensive pocket amid weakness in broader indices. Globally, US markets closed lower ahead of Federal Reserve Chair Jerome Powell’s much-awaited speech, while Asian and European peers managed modest advances, reflecting steadier sentiment abroad.

What’s Ahead

The near-term direction hinges on Powell’s Jackson Hole address, which could shape expectations for the Fed’s policy path and impact global risk appetite. Domestically, the market will track foreign institutional investor flows and crude oil price volatility for further cues. Pharma may continue to attract defensive buying, but overall sentiment is likely to remain choppy until clarity emerges on the global rate cycle.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty

The Nifty 50 index slipped 213.65 points (-0.85%) to close at 24,870.10, falling below a key psychological level. The session saw broad-based selling, with 42 constituents in the red, led by financials, IT, and metals. Heavyweights like HDFC Bank (-1.33%), ICICI Bank (-0.66%), and Reliance (-1.09%) dragged the index, while Auto (M&M +0.83%) and Telecom (Bharti Airtel +0.18%) managed to hold firm. Cement and metal names such as Ultratech Cement (-2.18%), Grasim (-2.34%), and Adani Enterprises (-2.20%) were notable laggards.

Technically, Nifty opened steady but succumbed to persistent selling pressure, closing near its day’s low. The index has given up recent gains, with RSI showing weakness and momentum indicators tilting towards bearishness. Global risk-off cues, including a US tech selloff and caution ahead of Fed Chair Powell’s Jackson Hole speech, added to the negative sentiment.

• Support: 24,677 / 24,558

• Resistance: 25,063 / 25,182

Bank Nifty

The Bank Nifty declined sharply by 606.05 points (-1.09%) to settle at 55,149.40, erasing the week’s gains. All 12 constituents ended lower, with no gainers across the board highlighting uniform sector weakness. HDFC Bank (-1.34%) and ICICI Bank (-0.66%) weighed heavily, while PNB (-1.75%) and AU Bank (-1.35%) also slipped notably.

On the technical front, the index opened steady but failed to sustain and remained under pressure throughout, closing at day’s low. With RSI around the neutral zone, the index reflects rising indecision and weakness. The underperformance of Bank Nifty versus Nifty further signals lack of sectoral leadership.

• Support: 54,854 / 54,672

• Resistance: 55,445 / 55,627

Sensex

The Sensex dropped 693.86 points (-0.85%) to close at 81,306.85, dragged down by broad-based selling. Out of 30 stocks, 25 declined, led by heavyweights HDFC Bank (-1.34%), ICICI Bank (-0.66%), and Reliance (-1.09%). Autos offered some support, with M&M and Maruti among the few gainers.

The index opened steady but witnessed sustained profit-booking, erasing gains from the recent rally. Closing near day’s low underscores weak sentiment.

• Support: 80,728 / 80,371

• Resistance: 81,885 / 82,243

FinNifty

The FinNifty closed lower by 256.3 points (-0.96%) at 26,317.05, with selling seen across major private banks. HDFC Bank (-1.34%), ICICI Bank (-0.66%), Axis Bank (-0.74%), and Kotak Bank (-1.55%) dragged the index lower. Out of 20 constituents, 17 ended in the red, while only HDFC AMC (+0.59%), Cholamandalam Finance (+0.38%), and Muthoot Finance (+0.18%) managed gains.

The advance-decline ratio of 3:17 highlighted weak breadth. Profit booking, coupled with lack of defensive buying in large banks, pointed towards sustained bearish undertone.

• Support: 26,146 / 25,973

• Resistance: 26,543 / 26,715