Market Wrap

Indian equity markets ended lower on Tuesday as benchmark indices failed to sustain early recovery attempts amid weak expiry-day participation and cautious global cues. After opening on a subdued note, the Nifty50 witnessed a brief rebound during the first hour of trade, but selling pressure gradually intensified through the second half, dragging the index near the 23,900 mark by the close. The benchmark eventually settled 0.49% lower as investors remained cautious amid rising geopolitical tensions and lack of strong domestic triggers.

Sectorally, the Nifty Metal Index emerged as the key outperformer, gaining more than 1% as metal stocks resumed their broader uptrend after a phase of consolidation. Improved global commodity sentiment and expectations of stronger infrastructure-driven demand supported buying in the sector. However, broader market participation remained relatively weak, indicating cautious positioning by traders at higher levels despite selective sectoral strength.

Global markets also traded with a cautious undertone as concerns around slowing global growth, uncertain interest rate expectations, and fresh geopolitical developments kept risk appetite subdued. Most Asian and European indices remained under pressure, although the FTSE managed to stay positive. Investors are also closely monitoring US economic developments, crude oil price volatility, and ongoing global trade discussions, all of which could influence foreign fund flows into emerging markets such as India.

What's Ahead

Markets are expected to remain volatile in the near term as investors continue to assess global uncertainties and weak broader market participation. Attention will gradually shift toward upcoming macroeconomic data releases and evolving corporate earnings expectations, which could provide clearer direction for equities in the coming sessions.

Traders will also closely track institutional activity, particularly FII flows, as sustained selling pressure at higher levels may keep benchmarks under stress unless supported by stronger domestic or global triggers. Additionally, any escalation in geopolitical tensions or sharp movement in global commodities could further influence overall market sentiment.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended lower at 23,913.70, declining 118 points (-0.49%) as profit booking in IT, banking, pharma, and financial stocks weighed on sentiment amid weak global cues and rising crude oil prices. The index failed to sustain its early recovery attempt and remained under pressure through the latter half of the session following cautious investor sentiment triggered by geopolitical concerns after the U.S. strikes in southern Iran. Technically, the benchmark has halted its short-term two-day recovery trend, while the RSI drifting toward the 50 mark indicates fading bullish momentum and a cautious undertone in the near term. As long as the index remains below the immediate resistance zone of 24,202–24,380, volatility and consolidation may persist. On the downside, immediate support is placed at 23,626, followed by a stronger support near 23,448.

Bank Nifty

The NIFTY BANK index closed lower by 200.75 points (-0.36%) at 55,092.90, dragged down primarily by weakness in heavyweight private lenders including ICICI Bank, HDFC Bank, Kotak Mahindra Bank, and Axis Bank. The index witnessed volatile movement throughout the session after opening on a stable note, but selling pressure intensified in the second half, pulling the benchmark lower despite selective buying in mid-sized and PSU banking names. Technically, the RSI slipping toward the 50 mark reflects easing momentum and indicates that bullish strength is moderating in the near term. The index continues to trade within a broad consolidation range, with immediate support placed at 54,255 followed by 53,737, while resistance is seen near 55,931 and 56,449. Sustained trade below resistance levels may keep the banking space range-bound with a negative bias.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index declined 169.90 points (-0.65%) to close at 25,932.25, as broad-based weakness across banks, NBFCs, and lending-focused financial stocks weighed heavily on overall sentiment. Selling pressure in key heavyweights such as Bajaj Finance, Chola Finance, REC, PFC, ICICI Bank, and HDFC Bank kept the index under pressure throughout the session, while limited gains in select insurance and exchange-related counters offered only marginal support. Technically, the index remains vulnerable in the near term as weak market breadth and continued profit booking suggest cautious positioning among traders. Immediate support is placed at 25,536 followed by 25,290, while resistance is seen near 26,329 and 26,574. A sustained move above resistance levels will be crucial for any meaningful recovery, while failure to hold support may trigger further downside pressure.

Sensex

The BSE SENSEX closed lower by 479.26 points (-0.63%) at 76,009.70, pressured by broad-based selling across banking, IT, financial, and consumer stocks. Weakness in heavyweights such as TCS, HDFC Bank, Bajaj Finance, Bharti Airtel, and Titan kept the benchmark under sustained pressure, although selective buying in auto, FMCG, and port-related counters helped limit sharper losses. Technically, the index continues to face resistance at higher levels amid cautious investor sentiment and weak global market cues. The near-term trend remains subdued as profit booking in frontline sectors and geopolitical uncertainties continue to impact risk appetite. Immediate support is placed at 75,007 followed by 74,386, while resistance levels are positioned at 77,013 and 77,633. A decisive breakout above resistance could revive bullish momentum, whereas sustained weakness below support zones may keep the index under corrective pressure.