Market Wrap

Indian equities ended lower after a volatile session, with late selling in realty, FMCG, and financials dragging the Nifty 50 to 24,487.40, down 97.65 points (0.40%), and the Sensex to 80,235.59, down 368.49 points (0.46%). Broader markets outperformed, with the BSE Midcap index easing 0.2% and the Smallcap index closing flat. Gains in auto, IT, pharma, and oil & gas stocks helped limit losses. Globally, sentiment improved after the US and China extended their tariff truce for 90 days, while US CPI inflation held steady at 2.7% in July and core inflation ticked up to 3.1%, tempering Fed rate cut hopes. US indices closed about 0.5% higher, Japan’s Nikkei hit record highs, and Australia’s central bank cut rates by 25 bps.

What’s Ahead

Investors will keep a close watch on inflation trends at home and abroad. India’s CPI cooling to 5.8% in July boosts hopes that the RBI may pause or slow future rate hikes, supporting equity sentiment. However, sticky core inflation globally, trade tensions, and central bank policy moves could limit upside. Quarterly earnings from financials and consumer-focused companies will be key to gauging the economy’s resilience in the near term.

Markets Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 slipped 97.65 points to 24,487.40, ending near the day’s low as selling in heavyweight financials weighed on sentiment. The index failed to hold early gains, reflecting weak follow-through buying. The RSI has dropped below 40, indicating rising caution and a potential tilt towards further weakness if selling pressure continues. Immediate supports are placed at 24,273 and 24,140, while resistance levels are seen at 24,702 and 24,835. A break below 24,273 could trigger a test of the 24,140 zone, while sustained trade above 24,702 may revive upside momentum.

Bank Nifty

Bank Nifty fell sharply by 467.05 points to 55,043.70, dragged by heavyweights HDFC Bank and ICICI Bank, with 11 out of 12 constituents ending in the red. RSI has slipped below 40, signaling renewed bearish undertones. Persistent FII outflows and high intraday volatility over the past three sessions suggest uncertainty is likely to persist. Key supports lie at 54,475 and 54,123, while resistances are placed at 55,613 and 55,965. Breaching 54,475 could accelerate selling, whereas crossing above 55,613 may open room for a short-term bounce.

Sensex

The Sensex lost 368.49 points to close at 80,235.59, weighed down by financials and select large-caps. Auto and IT names provided partial relief, but overall breadth was negative. Near-term supports are placed at 79,527 and 79,088, while resistance is seen at 80,944 and 81,383. The index remains vulnerable unless it reclaims 80,944 on a closing basis.

FinNifty

FinNifty dropped 270.50 points to 26,135.30 as broad-based weakness gripped the banking and NBFC space. The index has no meaningful gainers, reflecting a bearish bias. Support levels are at 25,873 and 25,655, with resistance seen at 26,405 and 26,610. A decisive move below 25,873 could extend the decline, while a break above 26,405 is required for stability to return.