Market Wrap

Indian equities began the day on a positive note, opening with a 55-point gap-up at 26,123, aided by supportive global cues. However, the early optimism faded quickly. The Nifty 50 drifted toward the 26,070–26,080 zone within the first hour and continued to lose ground through the session. Post 3 PM, selling intensified, dragging the index to intraday lows near 25,920 before settling at 25,959.50, down 0.4%.

The market breadth highlighted the weakness: only 810 of 3,214 NSE stocks advanced, while 2,315 declined, indicating broad-based pressure across the board.

Sectorally, the tone remained bearish. Nifty IT was the only sector to end in the green (+0.41%), buoyed by selective buying in export-oriented names. On the flip side, Nifty Realty plunged 2.05%, and 11 of 12 sectoral indices closed lower, signaling no hiding place for risk assets today.

On the macro front, RBI Governor’s comment about room for further rate cuts amid softening inflation offered medium-term optimism. But in the short term, the commentary failed to improve sentiment, with markets focused more on near-term headwinds and positioning ahead of expiry.

What's Ahead

With the weekly expiry approaching, volatility is likely to stay elevated as the market trades within a narrow, fragile range. Key triggers to watch include:

• Corporate earnings, especially from IT and export-heavy companies, which could add stock-specific momentum.

• FII flows, which remain the biggest swing factor in the absence of strong domestic catalysts.

• Global cues like U.S. retail sales, jobless claims, and movements in the rupee (near ₹89/$) and crude oil—all of which could dictate sentiment.

A breakout from the current consolidation zone will likely require a clear catalyst or a sharp turnaround in foreign flows. Until then, traders should brace for a range-bound yet volatile market setup.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 slipped 108.65 points to 25,959.50, extending its decline for a second straight session as weak breadth (39 declines vs 11 advances), profit-booking, and global softness weighed on sentiment. The index opened firm but failed to sustain early strength, gradually sliding from 26,142 to an intraday low of 25,912. The RSI dropping below 60 signals fading bullish momentum and increasing vulnerability to further consolidation. Immediate support rests at 25,733, followed by a stronger floor at 25,598, while overhead resistance is firm at 26,172 and 26,307. Until the index reclaims the 26,100–26,170 zone with strength, short-term bias remains mildly pressured with a possibility of deeper dips.

Bank Nifty

Bank Nifty ended marginally lower at 58,835.35, slipping 32 points in a session marked by weak breadth, with 9 of 12 constituents closing in the red. The index attempted an early push toward 59,309 but failed to hold gains and drifted toward 58,649 intraday. With RSI cooling towards 60, the index appears to be entering a consolidation phase after a strong rally. Near-term supports sit at 58,297 and 57,964, while resistances are placed at 59,374 and 59,707. As long as Bank Nifty stays below the 59,400–59,700 resistance band, upside traction may remain limited, though the overall structure remains healthy above 58,300.

Nifty Financial Services

The Nifty Financial Services index fell 67.50 points to 27,498.65, with 17 of 20 components ending lower, reflecting broad-based sectoral weakness. Declines in BSE, PFC, Jio Financial, and ICICI GI weighed on the index, alongside mild weakness in heavyweights like ICICI Bank, HDFC Bank, Kotak Bank, and SBI. The structure looks slightly fatigued, with near-term support at 27,256 and 27,105, while resistance lies at 27,742 and 27,892. Sustained trade below 27,740 may keep the index in a sideways-to-soft bias in the short term.

Sensex

The Sensex slipped 331 points to close at 84,900.71 as broad-based weakness dominated, with only 8 of 30 stocks advancing. Heavy selling in BEL, Tata Steel, M&M, and UltraTech dragged the index lower, while gains in TECHM, Asian Paints, and IT majors capped the downside. The index continues to show signs of fatigue near record zones, and with weak breadth supporting the decline, near-term supports are placed at 84,230 and 83,773, whereas resistance stands at 85,707 and 86,165. A breakout above 85,700 is essential to revive upward momentum.