Nifty broke the two day losing streak on strong global cues

Nifty continued its recovery, which started from Friday’s low and ended the day with the gains of 228 points or 0.92% at 24946. From Friday’s early morning low of 24473, Nifty has risen almost 500 points. BEL, Hdfclife and Sbi life emerged as major gainers on the Nifty while Tata motors, Dr reddy and Sunpharma bore the brunt of significant selling pressure, ultimately closing the session as major losers.

Trading volumes on the NSE cash market were down by 13% compared to yesterday, lowest since 06-May 2025.

The Indian rupee clawed back its early losses to close with appreciation of 0.02 paise against US dollar to settle at 86.06 levels. This strength was primarily fueled by a weakness in dollar index, a string of positive economic data domestically and strong equity markets.

The Nifty Midcap and Smallcap Indices broke their three-day losing streak, moving up in tandem with the benchmark. The Nifty Midcap 100 Index rose by 0.93%, while the Nifty Smallcap 100 Index gained 0.95%. Despite these sharp gains in the broader market segments, market breadth remained weak for the third consecutive day, with declining stocks marginally outpacing advancing ones, as indicated by a BSE advance-decline ratio of 0.94.

A positive sign was the performance across sectors, with all sectoral indices ending in the green. Among them, IT, Realty, Oil & Gas, and Metal were the major gainers.

From a technical perspective, by closing above 24,937, the Nifty has successfully retraced more than 61.8% of the entire 750-point fall observed from 25,222 to 24,473. Furthermore, the Nifty has filled the entire downward gap that was formed on Friday, on a closing basis. This combination of surpassing the 61.8% retracement level and completely filling the gap decisively negates the immediate possibility of a sustained downtrend in the Nifty, suggesting a potential shift back towards bullish momentum. Support for the Nifty has now shifted up near 24700. On the upside swing high of 25222 could offer near term resistance in Nifty.