The index opened 32 points higher but failed to sustain its early momentum, falling nearly 169 points from the day’s high by noon. The benchmark remained choppy with a negative bias through most of the session, tracking sharp weakness across Asian markets.
A modest recovery in the final hour helped the index close well off the day’s lows, with a 35-point surge during the Closing Auction Session (CAS) cushioning the decline.
The Nifty had bounced back from the key 24,000 support level on August 20, but failed to sustain the recovery over the past two sessions, slipping back into a phase of near-term weakness.
Among Nifty 50 constituents, JSW Steel, Hindalco and Tata Steel were the top gainers, while SBI Life, Adani Ports and Bajaj Finance emerged as the biggest laggards.
Sectoral performance remained mixed, with Metal, Realty and IT indices posting the strongest gains, while PSU Banks, Cement and Private Sector Banks recorded the steepest declines.
Broader markets were mixed, with the Nifty Midcap 100 rising 0.13%, while the Nifty Smallcap 100 declined 0.26%.
In the currency market, the rupee saw a sharp intraday reversal. Strong FCNR(B) inflows supported the currency at the open, but a sell-off in domestic equities and a stronger US dollar erased those gains. The rupee eventually settled 6 paise lower at 95.70 against the US dollar.
Indian equities are likely to remain lacklustre amid mixed global cues and a lack of strong domestic triggers, said Siddhartha Khemka of Motilal Oswal. Geopolitical tensions remain elevated amid the prospect of fresh US sanctions on Iran, while sectoral and stock-specific developments are likely to drive market action.
According to Nagaraj Shetti of HDFC Securities, the Nifty’s underlying short-term trend remains choppy. He said any decline towards the 24,100-24,000 zone could provide a buying opportunity, while a sustained move above 24,300 could trigger a trend reversal on the upside.
Osho Krishan of Angel One said the 24,150-24,100 zone is expected to provide immediate support, while the 24,050-24,000 region remains a crucial support area. On the upside, 24,300, which coincides with the 20-day EMA, is likely to act as an intermediate hurdle.
Krishan added that a sustained breakout above this level could strengthen the technical setup and pave the way for a recovery towards 24,500 in the coming sessions.
Nandish Shah of HDFC Securities said the Nifty slipped below its 20-day EMA at 24,292, signalling continued short-term weakness. However, the index continues to hold above its 50-day and 100-day EMAs, both placed near 24,200. Trendline support around 24,050 also remains intact, keeping the possibility of a recovery alive.
Shah added that the index continues to trade within the 24,000-24,400 range. A decisive breakout from this band could determine the next directional move, while continued range-bound trading may keep the focus on stock-specific opportunities.
Meanwhile, the Nifty Bank index also opened higher but failed to sustain its gains, reversing sharply and moving lower through most of the session.
A late recovery helped the index recoup some losses, with Bank Nifty eventually settling at 57,526, down 0.41%.
Going ahead, immediate support for Bank Nifty is placed in the 57,100-57,000 zone. A sustained move below this range could drag the index towards 56,600, followed by 56,200 in the short term. On the upside, immediate resistance is seen at 57,900-58,000, said Sudeep Shah of SBI Securities.
