Nifty slips for a third straight session on rupee weakness and higher crude

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty extended its losing streak for the third straight session, shedding 191 points to close at 23,996. The index opened 37 points lower and stayed under pressure through the day, eventually slipping below the key 24,000 mark. NSE cash market turnover was also down 2% from the previous session.

Among Nifty constituents, Bajaj Auto, Nestle and Tata Consumer led the gainers, while Indigo, Dr. Reddy's and Jio Finance were the major laggards.

Sector performance remained weak, with only Auto and FMCG managing to stay in positive territory. Media, Realty and PSU Banks were among the sharpest losers.

Broader markets also came under heavy selling pressure along with the benchmark indices. The Nifty Midcap 100 declined 1.09%, while the Nifty Smallcap 100 fell 1.53%. Market breadth weakened after two sessions of improvement, with the BSE advance-decline ratio dropping sharply to 0.53, indicating renewed selling in mid- and small-cap stocks.

After a brief recovery on Tuesday, the Indian rupee came under renewed pressure, slipping 32 paise to close at 96.56 amid a surge in crude oil prices and rising geopolitical uncertainty. Fresh concerns around U.S. tariff rhetoric also weighed on sentiment.

Technically, Nifty closed below its 20-day EMA (24,084) and 100-day EMA (24,136), while ending near its 50-day EMA (23,992), indicating increasing pressure on the short-term trend. The index also broke below the lowest level of the past nine sessions, pointing to weakening momentum.

A breakdown below the rising trendline connecting recent swing lows on the daily chart further strengthens the bearish setup. Nifty now appears headed toward the next support zone of 23,750-23,800, while the 24,200-24,300 band is likely to cap any near-term rebound.

Source : Equity Bulls

Keywords

Nifty HDFCSecurities MarketUpdate