Market Wrap

Indian equity markets witnessed a sharp escalation in selling pressure on Thursday, marking a clear shift in sentiment from the recent buy-on-dips approach. Benchmarks opened on a weak footing and steadily drifted lower through the session, reflecting heightened risk aversion across participants. The Nifty closed nearly 1% lower, slipping just below the 25,900 mark, as bears tightened their grip into the close.

The sell-off was broad-based, with midcap stocks leading the decline. The midcap segment erased gains from the past few sessions, raising concerns that volatility could intensify if selling pressure continues. Unlike recent corrective phases that attracted quick bargain buying, today’s move suggested a more cautious reassessment of risk, valuations, and positioning.

Global cues offered little support. Asian markets ended broadly lower amid lingering global economic uncertainty, while European indices traded in the red during Indian market hours. Germany’s DAX showed relative resilience by hovering near flat levels, but overall sentiment remained subdued. On the macro front, tightening global financial conditions, uncertainty around interest-rate trajectories, and selective profit booking after recent rallies combined to weigh on market confidence.

What's Ahead

Near-term market direction will hinge on whether selling pressure sustains in midcaps and the broader market. Investors will keep a close watch on upcoming global economic data, central bank commentary, and any fresh international developments that could influence risk appetite.

With volatility on the rise, markets are likely to remain sensitive to global cues, while stock-specific action may dominate as participants reassess earnings visibility and valuations. A cautious stance-especially toward leveraged and high-beta segments-may remain prudent until clearer signs of stability emerge.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended the session with a decisive bearish candle, closing below the 25,900 mark amid broad-based selling and heavy pressure from index heavyweights. The index slipped below its short-term moving averages, while the RSI dropping sharply below 50 signals a clear loss of bullish momentum and a potential shift toward a corrective phase. As long as the index remains below the 26,000–26,070 resistance zone, upside attempts may face selling pressure. On the downside, immediate support is placed at 25,754, and a breakdown below this level could open the door toward the 25,679 zone, keeping volatility elevated in the near term.

Bank Nifty

The NIFTY BANK witnessed a relatively contained decline compared to broader markets, but the overall structure shows signs of fatigue after recent highs. The index failed to sustain above the 60,000 psychological level and closed lower, forming a mild bearish setup on the daily chart. The RSI easing toward the 55 level indicates moderating bullish momentum rather than outright weakness, suggesting consolidation with a negative bias. Immediate support lies at 59,285, followed by 59,037, while resistance remains at 60,088 and 60,336; a decisive move beyond either zone will likely determine the next directional trend.

Nifty Financial Services

The NIFTY Financial Services index extended its corrective move, closing lower amid selling pressure across PSU lenders and select financial heavyweights. The index continues to trade below its recent swing highs, indicating profit booking at higher levels. Momentum indicators point to weakening strength, with the index vulnerable to further consolidation if buying interest does not emerge quickly. Near-term support is placed at 27,489, with a deeper corrective risk toward 27,373 if selling persists, while any recovery attempts may face resistance in the 27,863–27,979 zone.

Sensex

The BSE Sensex formed a strong bearish candle, reflecting sustained selling pressure across heavyweight constituents and confirming a short-term trend reversal from recent highs. The index has slipped below key short-term support levels, suggesting that rallies may be sold into unless there is a sharp improvement in sentiment. Momentum remains weak, and follow-through selling could drag the index toward the 83,769 level, with further support seen near 83,510. On the upside, immediate resistance is placed at 84,606, followed by 84,865, which is likely to act as a supply zone in the near term.