It subsequently recovered more than 100 points from the day’s low during the first half before giving up most of those gains in the latter part of the session.
The index ended off the day’s lows after a sharp 74-point surge during the Closing Auction Session (CAS), helping it recover most of its intraday losses. However, concerns over elevated international crude oil prices and a weaker rupee continued to weigh on sentiment.
Among Nifty 50 constituents, Titan, Tata Consumer Products and Bajaj Finance were the top gainers, while SBI, Eternal and ITC emerged as the key laggards.
Sectoral performance remained mixed, with Realty, Private Banks and Consumer Durables leading the gains, while PSU Banks, Oil & Gas and Healthcare were the biggest laggards.
Broader markets also delivered a mixed performance. The Nifty Midcap 100 gained 0.62%, while the Nifty Smallcap 100 declined 0.27%.
The Indian rupee started the week on a weaker note, depreciating 9 paise to close near 95.30 against the US dollar. A stronger dollar and elevated commodity prices weighed on the currency.
While domestic macroeconomic fundamentals remain constructive, geopolitical concerns and dollar buying at lower levels continue to weigh on sentiment.
Going ahead, benchmark indices are likely to remain range-bound amid elevated crude prices and the lack of progress towards a US-Iran resolution. However, broader markets could continue to see stock-specific action and sectoral rotation as the final leg of the Q1FY27 earnings season plays out.
Investors will also track US consumer and producer inflation data for cues on the Federal Reserve’s future rate trajectory. Key data points due on Thursday include UK GDP, US PPI and US jobs data.
On the earnings front, Solar Industries, Tata Motors, LG Electronics, Max Healthcare and Ipca Laboratories are among the companies in focus.
According to Nagaraj Shetti of HDFC Securities, the short-term trend of the Nifty remains choppy with a weak bias. He said any decline towards 24,300 could present a short-term buying opportunity, while 24,600 remains an immediate resistance level to watch for a turnaround.
Technically, the Nifty continues to oscillate between its 200-day SMA at 24,758 and 200-day EMA at 24,384. The primary trend remains bullish, with the index trading above its 20-, 50-, 100- and 200-day DEMAs. A decisive breakout above the 200-day SMA or a breakdown below the 200-day EMA could determine the index’s next directional move, said Nandish Shah of HDFC Securities.
LKP Securities’ Rupak De said the Nifty’s fall below 24,400 had triggered a decline towards 24,250, where the index found support around its 200-hour SMA before recovering.
De said a sustained fall below 24,400 on Thursday could drag the index towards 24,180. On the upside, 24,500 is likely to act as a crucial resistance, with a sustained move above this level potentially improving the near-term trend.
Meanwhile, the Nifty Bank index recovered from its initial weakness and moved higher, supported by buying in PSU banks. After facing resistance around the 57,750-57,790 zone, the index slipped to an intraday low of 57,470 before staging a sharp late-session recovery.
The index eventually broke past its earlier intraday resistance and closed at 57,886, up 0.77%, significantly outperforming the benchmark.
Going ahead, the immediate resistance for Bank Nifty is placed in the 58,300-58,400 zone. A sustained move above this range could extend the pullback towards 58,800, followed by 59,200 in the short term. On the downside, the 57,400-57,500 zone is likely to provide immediate support, said Sudeep Shah of SBI Securities.
