Nifty erases over 200 points from its morning highs to end the session flat

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

For the last six trading sessions, Nifty has slipped into an alternating pattern of one session of gain followed by one session of loss. Today, Nifty opened 171 points higher on the back of strong global cues, touched its intraday peak of 23,859 within the first few minutes, but failed to sustain momentum and reversed sharply. It declined more than 260 points from the high to eventually close at 23,654, down 4 points. NSE cash market turnover rose 6% compared to the previous session.

Among heavyweights, Grasim, IndiGo, and Apollo Hospitals were the top gainers, while Bajaj Finance, Hindustan Unilever, and Tech Mahindra emerged as key laggards.

Sectoral trends were mixed. Nifty Realty, Consumer Durables, and Auto indices ended in the green, whereas IT, FMCG, and Media sectors witnessed selling pressure and closed lower.

Broader markets showed a mixed undertone, with the Nifty Midcap 100 ending flat and the Nifty Smallcap 100 advancing 0.63%. Market breadth remained positive for the third consecutive session, as the BSE advance-decline ratio improved to 1.37, indicating sustained buying interest in mid- and small-cap stocks.

The Indian rupee snapped a nine-day losing streak, appreciating by 62 paise, to emerge as Asia's top-performing currency. This recovery follows a retracement in crude oil prices amid tentative signs of easing geopolitical friction, alongside active central bank intervention. Moving forward, investor focus will remain anchored on geopolitical developments and the upcoming RBI monetary policy review.

Technically, Nifty continues to exhibit a choppy trend and has once again failed to sustain above the 23,800resistance level. Immediate support is now seen near 23,400, aligned with an upward sloping trendline connecting recent higher lows. On the upside, a decisive close above 23,800 could trigger a pullback towards the 50-day EMA, currently placed around 24,016.

Source : Equity Bulls

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