Nifty extends decline for third straight session

Nifty extended its losing streak for the third consecutive session, slipping 41 points to close at 25,818. Over the past three sessions, Nifty has been forming a pattern of lower highs and lower lows on the daily chart, signaling that bears currently have the upper hand in the short term.

Among Nifty constituents, Shriram Finance, SBI, and Hindalco emerged as the top gainers, while Max Healthcare, Apollo Hospitals, and Trent faced selling pressure, ending as the biggest losers of the day.

Sectoral trends painted a mixed picture, with strength seen in Nifty PSU Bank, IT, and Metal indices, while Media, Consumer Durables, and Realty sectors led the declines.

Broader markets mirrored the benchmark’s weakness. The Nifty Midcap and Nifty Smallcap 100 indices lost 0.50% and 0.70%, respectively. Market breadth remained weak for the second consecutive session, as the BSE Advance-Decline ratio dipped to 0.55, signaling a continued profit booking within the mid- and small-cap segments.

Indian rupee snapped its five-day losing streak, appreciating sharply by 65 paise against the U.S. dollar. The rebound is widely attributed to suspected intervention by the central bank.

Nifty has reached near to its 50 DEMA support, which is currently placed at 25765. A decisive break below the 50-DEMA could trigger additional selling pressure and deepen the ongoing correction. On the upside, the 26,000 zone is expected to pose immediate resistance; a sustained close above it may prompt short covering in the index.

Disclaimer : This content is only for informational purpose. It does not make any recommendation to act or invest.

Source: HDFC Securities Prime Research