Nifty continues its upward journey Ahead of US Fed Meeting

The Nifty extended its gains for a second consecutive session, albeit with a minor increase of 33 points (0.14%), closing at 24855. Trading volumes on the NSE cash market were lower by 6% compared to yesterday.

Leading the charge among the Nifty’s top performers today were Larsen, Sun Pharma, and Tata consumers. Larsen’s strong performance was supported by higher than expected quarterly results announced yesterday. Conversely, it was a tougher session for Tata motors, Hero moto corp, and Powergrid, which ended as the major losers within the Nifty pack.

Today’s sectoral performance showcased a clear divergence. Nifty IT, FMCG, and Consumer Durables gained the most, while, on the flip side, Nifty Realty, Media, and PSU Banks experienced the steepest declines.

The Indian rupee exhibited its most significant single-day decline since May 8, plummeting by 60 paise against greenback to close at 87.42. This marks a fresh five-month low for Indian rupee. This sharp depreciation was primarily driven by increased month-end dollar demand and outflows from foreign funds. Adding to the negative sentiment, comments from US President Trump, suggesting that India could face tariffs of 20% to 25%, further weighed down the rupee.

Broader market underperformed the Benchmark Indices today where Nifty Midcap 100 Index registered a modest fall of 0.07%, while the Nifty Smallcap 100 Index saw a more pronounced loss of 0.52%. However, market breadth remained positive for the second day in the row. Advancing shares marginally outnumbered declining ones, with the advance-decline ratio on the BSE standing at 1.03.

Following yesterday’s bullish “Engulfing” pattern on the daily chart, the index continued its recovery in today’s trading. However, this upward movement was unable to push the Nifty above its 50-day EMA resistance, currently positioned at 24934. Looking ahead, the recent swing low of 24598 is anticipated to serve as a support level, while 24934 and 25000 are expected to offer short-term resistance to the index.