Market Wrap

Indian equity markets defied positive signals from GIFT Nifty and opened with a gap-down, dragged by early weakness in heavyweight stocks such as Reliance Industries and HDFC Bank. However, selling pressure eased after the first hour of trade, suggesting the absence of panic-driven exits.

On weekly expiry, Nifty 50 remained range-bound for most of the session and eventually closed near its opening levels, ending the day down 0.27%, marginally below the 26,200 mark. Sectorally, Nifty Pharma stood out as the clear outperformer, registering broad-based gains and decisively breaking out of a two-month consolidation phase—signaling improving momentum amid a defensive market bias.

Globally, Asian markets posted strong gains, with most key indices rising over 1%, while European markets traded mixed, reflecting selective risk-taking. Overall sentiment remained constructive as investors continued to factor in easing inflation trends and expectations of gradual policy normalization across major economies.

What's Ahead

With weekly expiry-related volatility behind, markets are likely to refocus on fresh triggers. Global macro cues—particularly U.S. growth data and interest rate expectations—will be crucial in shaping foreign fund flows. Domestically, sector rotation remains in focus, with defensives such as pharma showing leadership.

Further movement in heavyweight stocks, especially Reliance and banking majors, will be key for near-term index direction. As investors await global data releases, upcoming corporate earnings, and policy-related developments, the market may look for these cues to define its next decisive move.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 witnessed mild corrective pressure and closed marginally lower at 26,178.70, as profit booking in select heavyweight banking and energy stocks capped gains from defensives and selective IT buying. From a technical standpoint, the index continues to trade above key short-term moving averages, but the RSI slipping below the 60 mark signals a moderation in bullish momentum and hints at near-term consolidation. The intraday structure suggests buying interest near lower levels, indicating that dips are still being accumulated rather than aggressively sold. Immediate support is placed at 26,030, followed by a stronger cushion near 25,936, while resistance is seen at 26,336 and 26,430. A decisive move above resistance could revive upside momentum, while sustained trade below support may extend the corrective phase.

Bank Nifty

Nifty Bank managed to close marginally higher at 60,118.40 despite weakness in heavyweight constituents, reflecting underlying strength driven by selective buying in PSU and private banks. Technically, the index remains in a strong uptrend, with the RSI hovering near the 70 level, indicating sustained bullish momentum but also signaling overbought conditions in the near term. Price action shows healthy higher-high and higher-low formation, though upside may remain gradual unless heavyweight banks start participating. Key support levels are seen at 59,711 and 59,460, which should act as strong demand zones on any pullback, while resistance is placed at 60,525 and 60,777. Overall structure remains positive as long as the index holds above the 59,700 zone.

Nifty Financial Services

The Nifty Financial Services index closed higher at 27,945.10, extending its relative outperformance amid broad-based participation from banks, insurance, and lending stocks. From a technical perspective, the index continues to trade firmly above its key moving averages, reflecting a strong intermediate trend. Positive market breadth further strengthens the bullish setup, though mild resistance-driven consolidation cannot be ruled out after recent gains. Immediate support is placed at 27,722, followed by 27,592, while resistance lies at 28,141 and 28,271. A sustained move above the 28,100 zone could open the door for further upside, while any dips toward support are likely to attract buying interest.

Sensex

The Sensex ended the session lower at 85,063.34, weighed down by sharp declines in select heavyweight stocks, even as banking and IT names provided partial support. Technically, the index remains within a broader uptrend but is undergoing a phase of consolidation, with momentum indicators showing mild cooling after recent highs. The structure suggests range-bound movement in the near term, with stock-specific action likely to dominate. Immediate support is seen at 84,663, followed by a stronger base at 84,423, while resistance is placed at 85,439 and 85,680. A breakout beyond resistance could resume the upward trajectory, whereas a breach of support may invite deeper short-term correction.