Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities
The domestic equity market began the week on a cautious note despite an optimistic start. The Nifty index opened with an upside gap, hinting at bullish intent, but the momentum fizzled out quickly as selling pressure emerged at higher levels. Throughout the session, the index exhibited a pattern of gradual lower tops and bottoms, reflecting persistent weakness. By the close, Nifty slipped below the 26200 mark, ending marginally lower with a loss of 0.10%. On the daily chart, the formation of a bearish candle with a minor lower shadow underscores the indecisiveness and lack of follow-through buying.
Among the Nifty constituents, TMPV and Maruti stood out as the top gainers, showcasing resilience in the auto space, while Max Healthcare and Indigo were the major laggards, dragging the index lower.
Sectoral performance was mixed, with Nifty Auto and Nifty Metal emerging as the top gainers, indicating selective strength. Conversely, Nifty Realty and Healthcare indices faced selling pressure and ended as the top losers.
The broader market continued to display muted sentiment. Nifty Midcap 100 closed on a flat note, while Nifty Smallcap 100 managed a modest gain of 0.20%, suggesting limited participation beyond frontline stocks. Market breadth remained negative, with the advance-decline ratio skewed towards decliners. Out of the Nifty 500 universe, 274 stocks ended in the red, highlighting a cautious undertone among investors despite early optimism.
Nifty View
Going ahead, the zone of 26300-26330 will act as an important hurdle for the index. Any sustainable move above the 26330 level will lead to a sharp upside rally upto the 26500 in the short term. While on the downside, the zone of 26090-26060 will act as crucial support for the index.
Bank Nifty View
The banking benchmark index, Bank Nifty, marked a fresh all-time high on Monday and thereafter witnessed profit booking. Going ahead, the zone of 60000-60100 will act as an important hurdle for the index. Any sustainable move above the 60100 will lead to a sharp upside rally up to the 60600 level. While on the downside, the zone of 59300-59200 will act as important support for the index.