Market Wrap

Indian equity benchmarks ended Thursday’s session on a mildly negative note after a volatile and choppy trade. The markets opened flat-to-weak and remained range-bound in the first half, before selling pressure gradually intensified as bears gained some control. The Nifty50 drifted closer to its crucial 100-DEMA during intraday trade but managed to avoid any sharp breakdown, closing down 0.26%, marginally below the 25,670 mark. The muted decline signalled the absence of aggressive follow-through selling, suggesting that buyers continue to defend key levels.

On the sectoral front, PSU banks clearly stood out as market leaders. The Nifty PSU Bank index surged over 2%, decisively breaking above its recent highs and confirming a continuation of its bullish trend. The move reflected sustained institutional interest and relative strength within the financial space, even as broader markets stayed cautious.

In global markets, Asian equities traded firmly, with Japan’s Nikkei rising over 1%, lending some support to sentiment. However, European markets remained subdued and directionless, offering limited cues. Overall sentiment stayed guarded as investors weighed strong domestic sectoral performance against mixed global signals and lingering macro uncertainties.

What's Ahead

Markets are likely to remain data-driven in the coming sessions. Investors will closely monitor key US macroeconomic indicators, global bond yield movements, currency trends, and central bank commentary for cues on risk appetite.

While the ongoing strength in PSU banks could provide near-term downside support to the indices, the broader market direction will hinge on the Nifty’s ability to hold above key moving averages. In the absence of strong global triggers, stock-specific action and selective sector rotation are expected to dominate trading, keeping volatility elevated in the short term.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended the session lower at 25,665.60, extending losses for the second consecutive day amid cautious sentiment driven by mixed Q3 earnings and continued foreign outflows. The index traded within a wide intraday range but failed to sustain higher levels, closing below both the 20-day and 50-day EMAs, which keeps the near-term bias cautious. The RSI hovering around 40 indicates subdued momentum, while the formation of a doji candlestick reflects indecision between buyers and sellers near key support zones. Going ahead, the index needs to hold above 25,440–25,309 to avoid further downside, while a decisive move above 25,865–25,997 would be required to revive short-term bullish momentum.

Bank Nifty

The NIFTY BANK index closed almost unchanged at 59,580.15, indicating consolidation after recent moves. Despite strong buying interest in PSU banks and select private lenders, gains were capped by weakness in heavyweight names, resulting in a narrow trading range throughout the session. Technically, the index is in a range-bound phase, with the RSI around 55, suggesting neutral momentum and a lack of strong directional conviction. As long as the index sustains above the 59,179–58,931 support zone, the broader structure remains intact, while an upside breakout above 59,981–60,229 could open the door for renewed bullish momentum.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index slipped 0.31% to close at 27,501.40, pressured by selling in insurance and select NBFC stocks, partially offset by strength in PSU financiers and select banks. The index continues to trade with a mildly negative bias, reflecting selective profit booking at higher levels. Technically, the structure remains mixed, with momentum lacking strong follow-through on either side. Immediate support is placed at 27,317–27,201, and a breakdown below this zone could invite further weakness. On the upside, a sustained move above 27,691–27,807 is needed to signal a resumption of positive momentum.

Sensex

The BSE SENSEX ended 244.98 points lower at 83,382.71, weighed down by losses in FMCG, IT, and auto heavyweights, despite strength in metals, power, and select banking stocks. The index continues to exhibit a mildly corrective tone, with market breadth remaining negative. Technically, the SENSEX is trading below its recent highs and shows limited upside momentum in the near term. The immediate support zone lies at 82,688–82,247, which will be crucial to watch for any further downside pressure, while resistance is seen at 84,115–84,556, where selling pressure is likely to emerge unless broader sentiment improves.