Market Wrap

The Nifty50 slipped for the fourth consecutive session, closing 0.45% lower just above the 25,050 mark. The index has corrected nearly 392 points from its recent September high, weighed down by broad-based profit-booking. FMCG stocks emerged as rare gainers on defensive buying, while mid- and small-caps bore the brunt of sharp selling. Globally, sentiment remained mixed—Hong Kong’s Hang Seng jumped 1.6%, but European equities closed slightly lower, reflecting caution ahead of key economic data. On the domestic front, traders preferred to stay on the sidelines with the weekly F&O expiry adding to intraday volatility.

What's Ahead

With Nifty closing at the 38.2% Fibonacci retracement level (25,050), the index sits at a crucial inflection point. A break below 24,900 could accelerate selling, while a rebound above 25,200 may trigger short-covering. Volatility is expected to remain high amid expiry dynamics. On the global front, investors will closely watch the release of US Q2 GDP data and subsequent Fed commentary, which could shape foreign fund flows and set the tone for near-term market direction.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty50 closed 112.6 points lower at 25,056.9, marking a fourth consecutive session of weakness as selling pressure persisted across financials and industrials. Heavyweights like HDFC Bank, ICICI Bank, and Axis Bank dragged the index, while select defensive names such as PowerGrid, NTPC, and Hindustan Unilever provided limited support. The intraday movement showed lack of conviction, with the index failing to hold above 25,100 and ending near the day’s low. RSI has slipped toward neutral levels, indicating waning momentum. On the downside, key supports are placed at 24,862 and 24,741, while resistance levels are seen at 25,252 and 25,373.

Bank Nifty

The Bank Nifty dropped 388.25 points to settle at 55,121.5, down 0.7%, as persistent selling in frontline banks weighed heavily on the index. Despite early attempts to recover, the index slipped towards the day’s low and closed on a weak note. Breadth remained weak with 9 of 12 constituents declining, led by Axis Bank, HDFC Bank, and ICICI Bank, which together account for over 60% of the index weight. RSI hovered in mid-range, reflecting indecisive momentum, though the weak close signals bearish undertones. Immediate support is at 54,622 and 54,313, while resistance lies at 55,621 and 55,930.

Sensex

The Sensex fell 386.47 points to end at 81,715.63, down 0.47%, with banking heavyweights and auto majors driving losses. HDFC Bank, ICICI Bank, and Axis Bank remained the top drags, while Tata Motors and M&M added further downside pressure. On the other hand, PowerGrid, NTPC, and Hindustan Unilever provided selective cushion, helping limit broader losses. The overall market breadth, however, was negative, with 21 declines against just 9 advances. Technical levels suggest near-term support at 81,055 and 80,646, while resistance is pegged at 82,377 and 82,786.

FINNIFTY

The Nifty Financial Services index declined 171 points to close at 26,388.45, down 0.64%, reflecting weakness in the broader financial pack. Market sentiment was dampened by declines in HDFC Bank, ICICI Bank, and Axis Bank, with additional pressure from Jio Financial and HDFC Life. A few outliers like SBI Card and Muthoot Finance managed to post gains but were insufficient to offset the broader selling. The bearish tone in financials signals caution, with immediate support seen at lower levels, while upside remains capped unless heavyweights show strength.