Nifty Ends Four-Day Losing Streak on Strong Global Cues

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty snapped its four-session losing streak on the back of strong global cues, gaining 150 points to close at 25,966. However, on a weekly basis, this marked the third consecutive decline, with the index losing 0.31% for the week. Nse cash market turnover was higher by 41% as compared to yesterday on the back of Sensex and FTSE rebalancing related trades.

Among the Nifty Pack, Shriram Finance, Max healthcare and BEL led the gainers' list, while HCL Tech, Hindalco, and Kotak Bank faced selling pressure to close as the top losers.

All the Sectoral indices ended in the green. The rally was most pronounced in the Realty, Auto, and Healthcare sectors, which emerged as the day's top outperformers.

Broader market indices outperformed the benchmark, as Nifty Midcap 100 climbed 1.20% and the Nifty Smallcap index surged 1.34%. Market breadth turned positive after three days of weakness, with the BSE advance-decline ratio at 1.91, its highest level since 26 November, signaling fresh buying momentum in mid- and small-cap names.

The Indian rupee extended its gaining streak to a third consecutive session, surging 97 paise against the dollar to settle at 89.27-marking its strongest close since 26 November. This sharp appreciation propelled the rupee to the top of Asian currency rankings, fueled by robust corporate dollar inflows and a clear pivot back toward risk-on sentiment. With the RBI likely engaging in proactive intervention, the short-term outlook for USDINR has turned bearish.

Technically, Nifty has broken above a downward sloping trendline, connecting recent lower swing highs, signaling easing bearish momentum. This week, Index held above the swing low of 25,693 and formed a higher bottom at 25,726, accompanied by follow-through buying, a constructive technical sign.

A sustained move above 26,058 would confirm a bullish higher-top, higher-bottom structure on the daily chart, indicating a potential resumption of the primary uptrend. In that case, Nifty could extend its rise towards the next resistance levels at 26,202 and 26,330. On the downside, the level of 25,726 now acts as near-term support.

Source : Equity Bulls

Keywords

Nifty Sensex HDFCSecurities FTSERebalancing