The index opened 70 points higher but reversed sharply during the session, giving up more than 200 points from the day’s high and ending near its lowest level of the day. It was also the Nifty’s weakest close in six sessions.
The closing auction session (CAS) added to the pressure, with the index losing nearly 40 points during the final auction. The decline pushed the Nifty below the 24,100 support level.
Among Nifty 50 constituents, Adani Enterprises, Kotak Mahindra Bank and Adani Ports were the top gainers, while Hindalco, HDFC Bank and M&M were the biggest laggards.
Sectoral performance remained mixed. Pharma, Healthcare and Consumer Durables outperformed, while PSU Banks, Media and Metals came under selling pressure.
The broader market also weakened as investors booked profits. The Nifty Midcap and Smallcap indices fell 0.10% each.
The rupee, which opened largely unchanged after Wednesday’s market holiday, weakened during the session amid month-end dollar demand, short-covering and broader risk aversion. The currency ended 13 paise lower at 95.54 against the US dollar. A modest recovery in the dollar index following recent inflation data also weighed on the rupee.
Indian equities are likely to remain range-bound with a weak bias, as subdued global cues and selective selling continue to weigh on sentiment. Softer crude prices offer some relief, with Brent trading around $86 a barrel following progress towards an interim framework to resume shipping through the Strait of Hormuz, easing near-term concerns over supply disruptions.
Nifty outlook
Nandish Shah of HDFC Securities said the Nifty has closed below its 20-, 50- and 100-day DEMA, indicating continued weakness. A decisive break below the previous swing low of 24,025 would confirm a positional trend reversal, he said. On the upside, the recent swing high of 24,378 is likely to act as immediate resistance.
Rupak De of LKP Securities expects further weakness in the near term, which could drag the Nifty towards 23,900 and lower. On the upside, he sees resistance at 24,200 and 24,350.
Nagaraj Shetti of HDFC Securities said the underlying trend remains choppy with a weak bias. A failure to sustain above the crucial 24,000 mark could trigger further weakness in the near term, while the key overhead resistance is placed at 24,380.
Hitesh Rathi of Angel One said a decisive break below 24,075 could accelerate the ongoing weakness and trigger a correction towards the recent swing lows in the 23,650-23,600 zone.
Rathi sees immediate support in the 24,050-24,000 band, followed by stronger support at 23,850-23,800. On the upside, resistance is placed at 24,200-24,250, followed by a stronger hurdle in the 24,340-24,400 zone.
Bank Nifty outlook
Meanwhile, the Bank Nifty has remained in a consolidation phase, oscillating between 58,077 and 57,001 over the past 17 trading sessions.
Sudeep Shah of SBI Securities said the 57,100-57,000 zone is likely to remain a crucial support area. A sustained hold above this level could keep the index within its current consolidation range.
On the upside, the 57,900-58,000 zone is expected to act as an immediate and significant resistance, Shah said.
A decisive breakout above 58,000 or a breakdown below 57,000 could mark the end of the current consolidation phase and trigger a meaningful trending move in the respective direction, he added.
