Late Selling Drags Nifty Lower

Today’s session turned out to be a stark contrast to the previous day’s closing surge. After remaining strong until 2:00 P.M., the Nifty fell sharply in the last hour of trade, signaling profit booking. Nifty finally settled the session with a loss of 46 points (0.18%), closing at 25,476.

Leading the charge among the top performers on the Nifty, showcasing individual strength despite the broader market’s dip, were Shriram Finance, Bajaj Finance, and Coal India. Conversely, HCL Tech, Hindalco, and Tata Steel bore the brunt of the selling pressure, concluding the session as major losers. Volumes on the NSE cash market were higher by 5% compared to yesterday, indicating increased activity during this reversal.

Indian Rupee reversed its initial losses to gain two paise against the greenback, closing at 85.67 levels. The Rupee outperformed most other Asian currencies, with its strength primarily attributed to dollar supply from local banks and renewed optimism surrounding a potential USIndia trade deal.

The Nifty Midcap 100 Index continued its profit booking phase for the fourth consecutive day, ending with minor losses of 0.13%. On the other hand, the Nifty Smallcap 100 Index bucked the trend by rising 0.59%. Market breadth, despite the benchmark’s fall, ended positive, showing signs of improvement, with advancing stocks slightly outpacing declining ones, as indicated by a BSE advance-decline ratio of 1.07.

Amongst the sectoral indices, Nifty FMCG, Consumer Durables, and Auto were the major gainers, demonstrating resilience in what was otherwise a dull market for the benchmark. Conversely, Nifty Realty, Metal, and IT were the major losers, seeing significant profit booking.

From a technical perspective, an attempt by the Nifty to surpass the previous session’s high failed, with the index turning southward after making double top at 25,548. However, the Nifty did manage to protect its level above the previous session’s low, which indicates an ongoing consolidation within its primary uptrend. Support and resistance for the Nifty continue to be at 25,331 and 25,670 respectively. A decisive breakout from this range would give directional view in the index.