The index opened nearly flat, up just 7 points, and extended gains in the first 45 minutes to hit an intraday high of 24,378. However, selling pressure picked up after 10 am, dragging the Nifty 171 points from the day’s high.
The closing auction session (CAS) further weighed on the index, with the Nifty losing nearly 70 points during the session.
Among Nifty 50 constituents, Kotak Mahindra Bank, Axis Bank and JSW Steel were the top gainers, while Bharti Airtel, Power Grid and Infosys were the biggest laggards.
Sectoral performance remained mixed. Cement, Metal, Chemical and Private Bank indices were among the top performers, while IT, FMCG and Consumer Durables stocks witnessed the sharpest declines.
Broader markets also ended mixed. The Nifty Midcap index declined 0.10%, while the Nifty Smallcap index gained 0.81% to close at a record high.
Going ahead, Indian equities are likely to remain range-bound amid mixed global cues and key events lined up globally. Investors will track the US Q2 GDP data, inflation figures and Nvidia’s earnings announcement for further cues.
What analysts are saying
Nandish Shah of HDFC Securities said the Nifty faced resistance near its 200-day DEMA and witnessed profit booking at higher levels. The index closed near the day’s low, indicating renewed selling pressure and a lack of follow-through in the recent recovery.
Shah said the market remains choppy, with the Nifty yet to establish a clear directional trend. He sees the 24,100-24,400 range as crucial going ahead.
A decisive move above 24,400 could signal renewed strength, while a sustained break below 24,100 could increase the risk of further weakness. Until either level is breached decisively, the index is likely to remain volatile and range-bound, he said.
Osho Krishan of Angel One said the Nifty continues to face resistance around its 20-day DEMA, with a sustained breakout above this level needed to trigger the next leg of momentum.
On the downside, a decisive break below 24,200 could intensify selling pressure and drag the index towards 24,050, which coincides with a key Fibonacci retracement support level, Krishan said. On the upside, the 20-day DEMA near 24,300 remains a key hurdle. A sustained move above this level could restore bullish momentum and open the way towards 24,500 and higher levels, he added.
Nagaraj Shetti of HDFC Securities said the underlying trend remains subdued within the 24,100-24,400 range. A decisive breakout above 24,400-24,500 would confirm a valid breakout and open the possibility of a more sustainable upmove in the near term.
Conversely, a fall below the 24,100-24,000 support zone could trigger fresh weakness, Shetti said.
Sudeep Shah of SBI Securities sees 24,070-24,040 as the immediate support zone. A break below 24,040 could drag the index towards 23,900, while 24,340-24,360 is likely to act as the immediate resistance zone. A sustained move above 24,360 could trigger further gains towards 24,500, he said.
Rupak De of LKP Securities said a fall below 24,130 could trigger a sharper correction, potentially taking the Nifty towards 23,900 and 23,700.
On the upside, 24,350 remains a strong resistance level. A sustained move above 24,350 would change the current technical setup, while the index is likely to remain choppy until then, De said.
