Market Wrap

On weekly expiry day, the Nifty opened with a sharp gap-down and stayed weak throughout the session, briefly slipping below the 26,000 mark before a mild pullback helped it close just above the level - ending nearly 0.5% lower. Despite the broader weakness, Nifty Auto remained the star outperformer, supported by strong chart structure and steady rotational flows, indicating that its upside momentum could continue in the near term.

Global sentiment was positive yet subdued. Asian and European markets posted only marginal gains as traders turned cautious ahead of crucial economic data. Crude oil prices softened after OPEC+ signaled flexibility on future output cuts, potentially easing cost pressures for Indian manufacturers and logistics operators if the trend persists.

In the U.S., ISM Manufacturing contracted at a slower pace, pointing to early signs of stabilization and possibly influencing global risk appetite and FPI flows into emerging markets like India. Back home, early government indications hinted at strong Q3 tax revenue collections, reinforcing expectations of fiscal stability- a supportive backdrop for banking, infra, and capital-spending-linked sectors.

What's Ahead

Nifty now faces a key resistance zone at 26,150–26,200. A decisive close above this band will be crucial for the rally to broaden beyond autos and into cyclicals.

Investors will closely track:

• Comments from US Fed speakers that could shift global risk sentiment

• The RBI policy meeting on Friday, a potential volatility trigger

• Crude oil movement, which may drive sectoral rotations

Overall, the market setup suggests cautious consolidation in the very near term, with stock-specific action likely to dominate until major macro cues play out.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 slipped 143.55 points to close at 26,032.20 (-0.55%), as weakness in heavyweights such as Reliance, HDFC Bank, ICICI Bank and Axis Bank overshadowed gains in Asian Paints, Dr Reddy’s, Maruti and Bharti Airtel. The index traded within a range of 25,997.85–26,154.60 and remained under pressure due to profit booking, softer IIP data and likely FII outflows. Although selective buying in pharma capped deeper cuts, the broader market breadth stayed negative with 15 gainers and 35 losers. The RSI falling below 60 signals weakening bullish momentum, indicating that the index may consolidate unless it reclaims higher levels. Immediate support is placed at 25,900/25,815, while resistance zones are seen at 26,176/26,262.

Bank Nifty

Bank Nifty declined 407.55 points to end at 59,273.80 (-0.68%), weighed down by sustained selling in major private banks including ICICI Bank, HDFC Bank and Axis Bank, while PSU counters like IDFC First Bank, Canara Bank and Federal Bank provided limited support. The index oscillated between 59,251.95 and 59,656.55 before closing near the day’s low, reflecting persistent supply pressure. The RSI has dropped sharply toward the 60 mark, suggesting a slowdown in upside momentum and a possible shift toward range-bound or corrective action in the near term. Key support levels are placed at 58,787/58,485, whereas resistance is capped at 59,761/60,062.

Nifty Financial Services

The Nifty Financial Services index fell 249.25 points to 27,565.25 (-0.90%) as broad-based selling hit leading financial names such as ICICI Bank, HDFC Bank, Axis Bank and ICICI Pru Life. While select stocks like SBI Card, LIC Housing Finance and SBI Life posted mild gains, the index still recorded a weak market breadth with only 5 advances against 15 declines. The structure remains vulnerable with heavyweights dragging the uptrend, and the near-term price action suggests further consolidation unless fresh buying emerges. Immediate support stands at 27,372/27,252, while resistance levels are placed at 27,759/27,879.

Sensex

The Sensex slipped 503.63 points to close at 85,138.27 (-0.59%), pressured by declines in banking and heavyweight counters including Axis Bank, HDFC Bank, Reliance and ICICI Bank, along with weakness in L&T and BEL. Gains in Asian Paints, Maruti, Bharti Airtel, Hindustan Unilever and Bajaj Finance offered partial relief, but overall market breadth remained negative at 9 advances and 21 declines. The index continues to reflect selling at higher levels, and with sentiment softening, consolidation may persist unless it manages to reclaim upper resistance bands. Key support zones lie at 84,609/84,298, while resistance is seen at 85,614/85,925.