Profit Booking Continues for Second Day

Nifty continued to face selling pressure at higher levels on a Nifty weekly expiry session, where it closed with a loss of 48 points or 0.19%, to close at 25405. Despite the prevailing selling, Dr. Reddy’s, Apollo Hospitals, and Hero MotoCorp emerged as top performers on the Nifty, demonstrating notable resilience. Conversely, SBI Life, Kotak Bank, and Bajaj Finserv bore the brunt of the selling pressure, concluding the session as major losers. Trading volumes on the NSE cash market were 8% lower compared to yesterday, indicating a moderation in activity.

The Indian Rupee appreciated sharply by 39 paise against the greenback to close at 85.31. This marks its highest close since May 26, 2025. This resurgence in the rupee was primarily driven by anticipated foreign capital inflows and a positive outlook surrounding an impending trade agreement with the United States.

The Nifty Midcap and Smallcap Indices bucked the broader trend today, managing to end marginally in the green. The Nifty Midcap 100 Index rose by a slight 0.03%, while the Nifty Smallcap 100 gained 0.26%. Market breadth also turned marginally positive, with advancing stocks just outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.01.

Amongst the sectoral indices, Nifty Media, Consumer Durables, and Healthcare gained the most, showcasing pockets of strong buying interest. Conversely, Nifty PSU Banks, Metal, and Realty were the major losers, contributing to the benchmark’s dip.

From a technical perspective, Nifty seems to be in a correction phase for the last four trading sessions. Previous swing highs of 25317 and 25222 could act as support in this correction phase of Nifty. On the higher side, a level of 25600 could offer immediate resistance to the index.