Market Wrap

After four straight sessions of gains, Indian equities saw mild profit booking on Tuesday, with the Nifty 50 slipping 0.27% to end just below 25,050 and the Sensex closing marginally lower. Investors chose to lock in profits ahead of the Q2 corporate earnings season, leading to a pause in momentum. However, selective strength in IT stocks helped cushion the decline, as market participants positioned themselves for strong Q2 numbers from TCS and Infosys, both set to announce results later this week.

Globally, sentiment remained mixed major Asian indices ended about 0.5% lower, reflecting cautious trade, while European markets gained over 0.5% following better-than-expected industrial output data. In macro cues, U.S. Treasury yields edged higher after Fed officials reiterated a data-dependent stance on rate cuts. Meanwhile, Brent crude hovered near $85 per barrel, easing concerns on India’s inflation and import bill. Encouragingly, FIIs turned marginal net buyers after four sessions of selling, signaling a short-term stabilisation in foreign fund flows.

What's Ahead

All eyes now turn to the Q2 earnings season, starting with TCS results today, which could set the tone for IT sector performance and broader market sentiment. Volatility is expected to pick up as investors assess earnings for signs of export demand recovery and margin strength. On the global front, upcoming U.S. and Eurozone inflation data later this week may influence risk appetite. Technically, a sustained move above 25,100 could reignite bullish momentum, while 24,850 remains a crucial near-term support zone for the Nifty.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 ended the session with a mild decline of 0.25%, reflecting profit booking in key banking and auto counters after a steady rally. Despite early stability, the index failed to sustain gains above 25,100 and slipped toward the 25,000 mark. The RSI moving below 60 signals waning bullish momentum, suggesting consolidation or mild corrective action in the near term. The index now faces immediate support at 24,843 and 24,717, while resistance remains capped at 25,249 and 25,375. Sustained movement below 25,000 could invite further weakness toward the lower support zone, while a breakout above 25,250 may reignite bullish sentiment.

Bank Nifty

The Bank Nifty underperformed, closing 0.39% lower amid broad-based weakness in large and mid-tier banks. The index traded in a narrow range, failing to attract strong buying interest after recent gains. With RSI still near 60 but showing signs of fatigue, traders should watch for consolidation or mild correction as the index approaches key supports at 55,481 and 55,149. On the upside, resistance is seen at 56,555 and 56,888. A sustained break below 55,800 could extend the profit-booking phase, while holding above 56,300 may help regain short-term momentum.

Sensex

The Sensex slipped 0.19%, mirroring weakness in key financial and energy heavyweights. Despite resilience in IT majors, selling in autos and banking capped upside momentum. The index continues to hover near short-term support levels, with the RSI reflecting a mild cooling in momentum. Immediate support lies at 81,076 and 80,644, while resistance is pegged at 82,471 and 82,903. Sustained trade below 81,700 could trigger further downside toward 81,000, whereas a rebound above 82,500 may signal recovery toward new highs.

FINNIFTY

The Nifty Financial Services index extended its decline by 0.45%, dragged down by weakness in major banks and insurers. The index is witnessing rotation out of heavyweights into select NBFCs, which offered some cushion. Technical indicators suggest consolidation, with RSI flattening near neutral levels. Immediate support is placed at 26,450 and 26,300, while resistance is expected near 26,900 and 27,050. Sustaining below the 26,600 zone could invite further weakness, whereas a bounce above 26,900 may revive short-term bullish momentum.