The Nifty closed 11 points higher at 24,636, remaining confined to a narrow 70-point range throughout the session, indicating subdued volatility. Unlike the sharp swings seen over the previous three sessions following the Closing Auction Session (CAS), Thursday’s trade was largely range-bound with marginal gains by the close.
Among the Nifty 50 constituents, Reliance Industries, State Bank of India and Bharat Electronics were the top gainers, while Power Grid, Tata Steel and TCS ended among the biggest losers.
Sectoral performance was mixed. PSU Banks, Chemicals and Oil & Gas outperformed, whereas Media, Auto and Metal emerged as the biggest laggards.
The broader market also witnessed mixed trends. The Nifty Midcap 100 declined 0.44%, while the Nifty Smallcap 100 outperformed with a gain of 0.48%.
Looking ahead, market sentiment is expected to remain constructive, supported by hopes of easing tensions in West Asia and a better-than-expected June-quarter earnings season.
Brent crude prices slipped below $80 per barrel amid optimism that progress in the Iran-Oman talks could pave the way for a US-Iran agreement, easing concerns over energy prices.
Investors will also keep an eye on June-quarter earnings from SBI, Titan, Hindalco, Hitachi Energy and Godrej Consumer Products, along with the US non-farm payrolls data due later on Friday.
Meanwhile, the rupee weakened by 10 paise to close at 95.22 against the US dollar, making it the weakest-performing Asian currency during the session amid a rebound in commodity prices and sustained dollar demand from importers.
Technical outlook
Nagaraj Shetti of HDFC Securities said the underlying trend for the Nifty remains positive despite the recent range-bound movement. He believes any decline towards the 24,400-24,300 zone could offer a buying opportunity, while a decisive move above 24,800 may open the door for a rally towards 25,150.
Nandish Shah of HDFC Securities said the Nifty has been forming lower highs and higher lows over the past three sessions, indicating contracting volatility. The broader trend remains bullish as the index continues to trade above all key moving averages.
Shah sees immediate resistance at 24,770-25,000, while the 24,430-24,380 zone is likely to provide support.
According to Rupak De of LKP Securities, the Nifty remained range-bound as investors awaited fresh triggers. He said 24,600 has emerged as an important support level, while a sustained move above 24,800 could trigger the next leg of the rally.
Meanwhile, Bank Nifty also traded in a narrow range before ending 0.56% higher above the 58,000 mark.
Sudeep Shah of SBI Securities expects the 58,500-58,600 zone to act as the immediate hurdle for Bank Nifty. A sustained move above 58,600 could pave the way for an advance towards 59,100 and 59,600, while the 57,600-57,500 region is expected to provide strong support.
