Global headwinds and elevated crude oil prices continued to weigh on sentiment. The benchmark index remained largely range-bound through the session, with repeated attempts at recovery failing to gain momentum.
Among Nifty constituents, HDFC Life and Power Grid were the top gainers, while HCLTech and Hindalco Industries were the major laggards.
On the sectoral front, Nifty Media and Nifty Financial Services outperformed, while Nifty Metal and Nifty Pharma were the top underperformers.
Broader market participation remained weak, with both the Nifty Midcap 100 and Nifty Smallcap 100 ending in negative territory.
Market Outlook
Indian equities are likely to remain under pressure amid elevated crude prices and persistent global uncertainty. Brent crude has crossed the $100-a-barrel mark and is currently around $102 a barrel, while rising attacks on commercial shipping have increased concerns over potential supply disruptions amid the intensifying conflict.
The conflict has entered its seventh month with no signs of de-escalation. Any further escalation in shipping attacks or disruption around the Strait of Hormuz could push crude prices higher, putting further pressure on the rupee. The rupee depreciated 0.3% to ₹95.4 against the US dollar on Thursday. A sustained rise in crude prices and further currency weakness could also raise concerns over the policy outlook.
In the primary market, the NSE IPO will open for subscription on September 16, with the price band expected to be announced on Friday.
Investors will track the NSE IPO price band announcement and the US August CPI data on Friday. The inflation print is likely to influence expectations around the Federal Reserve’s rate trajectory, US Treasury yields, the dollar and emerging-market flows. India’s weekly foreign exchange reserves data will also be watched amid elevated crude prices and pressure on the rupee.
Technical outlook
Nagaraj Shetti of HDFC Securities said the bearish sequence of lower highs and lower lows continues on the Nifty’s daily chart. Any further bounce from current levels could potentially form a new lower top around the 23,625 level, he said.
On the downside, further weakness could drag the Nifty towards the next crucial support level of around 23,100 in the near term, Shetti added.
Osho Krishan of Angel One said 23,370-23,350 is expected to act as the immediate support zone, while a sustained breach could drag the index towards 23,250, followed by 23,150-23,050.
On the upside, favourable triggers could provide some respite, with 23,570-23,630, representing the recent bearish gap, likely to be retested. Sustained acceptance above this zone would be crucial for a recovery towards 23,800, which remains a formidable hurdle, Krishan added.
LKP Securities’ Rupak De said the Nifty closed higher after a lacklustre session as the CAS closing came in higher.
On the downside, immediate support is placed in the 23,380-23,400 zone, while resistance is seen at 23,550-23,600. A sustained move above 23,600 could extend the recovery towards 23,800, De added.
The banking benchmark Bank Nifty traded with a negative bias through most of Thursday’s session. However, the index recovered sharply during the CAS, gaining more than 200 points from its intraday levels. Bank Nifty eventually settled at 56,472, up 0.31% for the session.
Sudeep Shah of SBI Securities said the 56,000-55,900 zone is expected to act as a crucial support area for the index. A sustained breach below 55,900 could intensify selling pressure and lead to a further decline towards 55,400 in the near term.
On the upside, the 200-day EMA zone of 56,700-56,800 is likely to act as a significant hurdle, Shah added.
