The Nifty opened flat and remained firm in the first half of trade, rising as much as 66 points to 24,143. However, selling pressure intensified mid-session, dragging the index down 191 points to an intraday low of 23,952.
The benchmark recovered more than 100 points in the final hour, while the CAS settlement added over 70 points, helping the index close above the crucial 24,000 mark.
At 3:15 pm, the Nifty was at 23,981 before settling at 24,056 at 3:30 pm. The Nifty Bank stood at 57,264 at 3:15 pm and closed at 57,410, while the Sensex moved from 76,725 to 76,944 during the CAS.
Among Nifty 50 constituents, ITC, Bharti Airtel and Adani Ports were the top gainers, while Shriram Finance, Maruti Suzuki and Nestle India ended among the biggest laggards.
Sectoral performance remained mixed, with IT, FMCG and Oil & Gas outperforming. Healthcare, Pharma, Realty and Consumer Durables came under pressure and ended among the worst-performing sectors.
The broader market also witnessed selling pressure. The Nifty Midcap 100 declined 1.4%, while the Nifty Smallcap index fell 0.23%.
Meanwhile, the Indian rupee extended its winning streak to a third consecutive session, appreciating 21 paise to close at 94.95 against the US dollar – its strongest level in two months. The currency was supported by stronger domestic growth data, even as geopolitical risks remained elevated and the Reserve Bank of India continued to support the rupee through dollar supplies.
For equities, the near-term outlook remains cautious amid persistent US-Iran tensions, elevated crude prices and continued institutional selling. Brent crude rose 1.7% to around $92 a barrel, raising concerns over inflation and potential disruptions to energy supplies.
Domestic economic data, however, remains supportive. India’s GDP expanded 7.8% year-on-year in Q1 FY27, beating expectations, with manufacturing and services activity providing support to growth. GST collections rose 14.8% year-on-year to ₹1.99 lakh crore in August, while the Centre’s fiscal deficit stood at 26.8% of the FY27 target during April-July.
Investors will also track US labour-market data due later today for cues on the Federal Reserve’s interest-rate trajectory, according to Siddhartha Khemka of Motilal Oswal.
Nifty outlook
Nagaraj Shetti of HDFC Securities said the underlying trend remains negative amid choppy trade, with the index yet to show a sustainable recovery from the crucial 24,000 support zone. A break below this level could drag the Nifty towards the next support at 23,800, while a move above 24,150 could open the door for a short-term recovery.
Nandish Shah of HDFC Securities said the 70-point rise during the CAS helped the Nifty defend the 24,000 mark. According to him, the 24,200-24,250 zone is likely to remain a strong resistance area, with multiple moving averages clustered around these levels.
Shah said that a sustained close below 24,000 could pull the index towards the 23,823-23,890 support band.
Hitesh Rathi of Angel One said a decisive daily close below 24,000 could accelerate the ongoing bearish trend. He sees 23,800-23,700 as the next major support zone, while 24,150-24,200 is likely to act as immediate resistance, followed by a stronger hurdle at 24,300-24,360.
Rupak De of LKP Securities said the Nifty failed to sustain its intraday gains after facing resistance near the 50-EMA. The index found initial support around a modified rising channel, but a sustained break below 23,950 could trigger the next leg of correction.
On the upside, holding above 23,950 could pave the way for a near-term recovery. However, higher levels are likely to continue attracting selling pressure, with 24,200 emerging as the first key resistance.
