Nifty Extends Losing Streak to Fourth Session; Closes at Lowest Level Since May 12

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

The Nifty declined for the fourth consecutive session, falling 165 points to settle at 23,382, its lowest closing level since May 12. Despite a positive start with a 107-point gap-up on the back of strong global cues, the index quickly lost momentum and continued its southward journey throughout the session. It eventually closed near the day's low, marking a sharp reversal of over 375 points from the intraday high. NSE cash market turnover was subdued, declining more than 6% compared to the May month average.

Among index constituents, Tech Mahindra, Infosys, and Coal India emerged as top gainers, while FMCG stocks-Hindustan Unilever, Tata Consumer, and ITC ended as top losers.

Barring Nifty IT, Media and Metal, all sectoral indices closed in the red, with FMCG, PSU Banks and Realty leading the declines.

Broader markets mirrored the weakness in the benchmark, with continued profit booking. The Nifty Midcap 100 and Smallcap 100 indices declined by 1.45% and 0.90%, respectively. Market breadth remained negative for the second consecutive session, with the BSE advance-decline ratio at 0.58, indicating sustained selling pressure in the mid- and small-cap segments following the recent rally.

Indian rupee gave up early gains to close flat against the US dollar after weakening by over 25 paise intraday. The pressure was largely driven by rising crude oil prices and subdued domestic equity sentiment.

From a technical standpoint, Nifty continues to trade below all key moving averages, indicating a prevailing downtrend across timeframes. Immediate support is placed at the recent swing low of 23,262; a decisive breach could accelerate downside momentum toward the 23,000. On the upside, the 23,700-23,800 zone is likely to act as a resistance band.

Source : Equity Bulls

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