Market Wrap

Indian markets started the week on a cautious note, extending their short-term correction as the Nifty slipped below its 20-day exponential moving average (DEMA) to close near the 25,500 mark — down about 0.3–0.4%. Weak market breadth and pressure in cyclical sectors weighed on sentiment, even as IT stocks showed relative resilience. The broader tone turned defensive, with traders avoiding high-beta pockets. Globally, attention shifted to the U.S. Supreme Court’s hearing on the reciprocal-tariff programme, where justices’ skepticism over the legal validity of sweeping tariff powers introduced fresh uncertainty for global trade. Domestically, the formal announcement of Bihar assembly elections added another layer of political risk, prompting caution among investors. Overall, the market is navigating a mix of technical weakness, event-driven volatility, and selective buying interest in defensives and IT names.

What's Ahead

With momentum still fragile, the Nifty is likely to retest its key support zone between 25,440 and 25,360, while facing resistance around 25,700–25,800. A decisive move back above the 20-DEMA will be crucial to restore short-term confidence. Key triggers to watch this week include any clarity from the U.S. tariff deliberations, Q2 earnings commentary from IT and banking majors, FII flow trends, and crude and currency movement — all of which could sway near-term sentiment. Traders are advised to remain cautious, focus on stock-specific setups, and keep tight stops until broader market breadth shows signs of recovery.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 slipped 87.95 points, or 0.34%, to close at 25,509.70, extending its losing streak amid weak global cues and persistent FII outflows. The index opened firm but failed to sustain higher levels, weighed down by sharp declines in GRASIM (-6.42%), HINDALCO (-5.39%), ADANIENT (-4.50%), and POWERGRID (-3.15%). However, selective buying in Asian Paints (+4.75%), Reliance (+1.47%), and Ultratech Cement (+1.04%) provided some cushion. Market breadth remained weak with 33 declines and 17 advances, reflecting broad-based selling. Technically, the index continues to face resistance near the 25,680–25,786 zone, while support lies at 25,337 and 25,231. The RSI continues to drift lower, indicating fading momentum. A close below 25,300 may trigger further weakness, whereas a rebound above 25,700 could signal short-term recovery.

Bank Nifty

The Bank Nifty fell 272.80 points, or 0.47%, to settle at 57,554.25, as pressure persisted across key banking constituents. Despite marginal gains in HDFC Bank (+0.23%), SBI (+0.23%), and Axis Bank (+0.09%), the index was dragged lower by ICICI Bank, PNB, Federal Bank, and IDFC First Bank. The index traded between 57,521 and 57,945 during the session, reflecting a lack of strong directional conviction. Momentum indicators suggest fatigue, with RSI slipping but still holding above 50. Immediate support levels are placed at 57,263 and 57,068, while resistance stands at 57,895 and 58,091. A decisive move below 57,000 could extend the correction, while stability above 58,000 may attract fresh buying interest.

Sensex

The Sensex declined 148.14 points, or 0.18%, to close at 83,311.01, mirroring the cautious mood across global markets. Weakness in major constituents like HDFC Bank (-0.06%) and ICICI Bank (-1.22%) offset gains in Asian Paints (+4.76%) and Reliance (+1.62%). The index breadth remained negative, with 11 of 30 stocks advancing. PowerGrid, BEL, and Bajaj Finance were among the top drags. On the technical front, support lies at 82,832 and 82,528, while resistance is seen at 83,816 and 84,120. The bias remains mildly negative unless the index sustains above 83,800 in upcoming sessions.

FINNIFTY

The FinNifty index shed 162.7 points, or 0.6%, to close at 27,033.1, as selling pressure persisted across financial heavyweights. Despite modest gains in SBI (+0.23%) and HDFC Bank (+0.23%), broader sentiment was weak with only 3 advances against 17 declines. Declines in Chola Finance (-4.06%), PFC (-2.20%), ICICI Bank (-1.24%), and Kotak Bank (-0.79%) weighed heavily on the index. Technically, the index is approaching key support at 26,853 and 26,742, while resistance is capped at 27,213 and 27,325. Sustained movement below 26,700 could lead to further downside, whereas a rebound above 27,300 may help the index regain momentum.