Market Wrap

Indian equity markets witnessed a sharp sell-off on weekly expiry, with the Nifty opening weak and breaking decisively below crucial support levels. The technical breakdown triggered aggressive selling throughout the session, pushing the index down 1.38% to close just above the 25,200 mark. Sentiment turned distinctly risk-off as weak global cues and heavy profit booking weighed across sectors.

Broader markets underperformed the frontline indices, reflecting widespread risk aversion rather than isolated stock-specific pressure. Realty stocks emerged as the worst hit, plunging nearly 5%, as rising global bond yields and valuation concerns prompted investors to exit interest-rate-sensitive names. Market breadth remained firmly negative, underscoring the depth of the sell-off.

Globally, overnight weakness in U.S. markets set a negative tone, which spilled over into Asian and European equities, both trading in the red. Persistent concerns around global monetary tightening, mixed U.S. macro data, and unresolved geopolitical and trade uncertainties further dampened investor confidence, keeping risk appetite subdued.

What's Ahead

Markets are expected to remain volatile in the near term as participants digest the technical breakdown in the Nifty. Key triggers to watch include global macroeconomic data, U.S. bond yield movements, central bank commentary, and early earnings signals from domestic and global corporates.

While any improvement in global sentiment could spark a technical bounce, sustainability will depend on the Nifty’s ability to reclaim key resistance levels. Until then, the near-term bias is likely to remain cautious, with a sell-on-rise approach dominating short-term trading strategies.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 witnessed a decisive bearish breakdown, closing sharply lower at 25,232.50 after slipping below key support zones amid broad-based selling. The index traded with a negative bias throughout the session, forming a weak close near the day’s low, which reinforces short-term downside momentum. The RSI has dropped to 30, approaching oversold territory, signalling strong bearish strength but also raising the possibility of a near-term technical bounce. However, the broader structure remains weak as long as the index stays below immediate resistance. On the downside, supports are placed at 24,945 and 24,776, while any pullback is likely to face stiff resistance near 25,493 and 25,662.

Bank Nifty

The NIFTY BANK index closed at 59,404.20, extending its corrective phase as selling pressure persisted across both PSU and private sector banks. Despite an early attempt to stabilize, the index failed to sustain higher levels and drifted lower through the session, reflecting fading momentum. The RSI has slipped sharply below 50, indicating a loss of bullish strength and increasing downside risk in the near term. The index may continue to remain under pressure unless it reclaims key resistance zones. Immediate support lies at 59,033 and 58,803, while resistance is seen at 59,775 and 60,005, which could cap any recovery attempts.

Nifty Financial Services

The NIFTY Financial Services index closed weak at 27,200.60, registering a sharp decline as intense selling gripped the broader financial space. The index remains in a short-term downtrend, with heavyweights dragging prices lower and market breadth staying firmly negative. Price action suggests sustained distribution at higher levels, keeping sentiment fragile. While minor technical rebounds cannot be ruled out, the trend continues to favour bears below key resistance levels. On the downside, supports are placed at 27,060 and 26,943, whereas resistance levels stand at 27,438 and 27,555, beyond which stability may improve.

Sensex

The BSE Sensex ended sharply lower at 82,180.47, reflecting persistent selling pressure across frontline stocks and a clear deterioration in market sentiment. The index closed well below its intraday highs, confirming bearish dominance and limited buying interest at lower levels. The broader technical structure indicates further vulnerability if follow-through selling emerges. Immediate support is located at 81,409 and 80,863, which are crucial to prevent a deeper correction. On the upside, resistance is seen at 83,172 and 83,717, and the index is likely to remain under pressure unless it manages a decisive move above these levels.