Nifty extends losing streak to eight sessions

The Nifty fell for its eighth straight session, ending the day with a minor fall of 23 points to close at 24,611. Despite this persistent decline over the past eight days, the index still managed to eke out a 0.45% gain for the September series.

Amongst the Nifty pack, Adani Ports, Ultratech Cement, and JSW Steel led the charge, emerging as the top performers. Conversely, it was a difficult session for Indigo, ITC and Bajaj Finserve ended as the major index losers. On the day of monthly expiry, trading activity remained subdued, with cash market turnover on the NSE registering a 3% decline compared to the average of last ten days.

Sectoral performance was a mixed bag. Sectors that showed resilience and posted gains included PSU Banks, Metal, Auto, and Bank. Meanwhile, sectors that witnessed selling pressure were Media, Consumer Durables, and Realty.

The pain in the currency market continued, with the Indian Rupee logging its fifth consecutive month of decline, driven primarily by persistent foreign fund outflows and mounting trade concerns. For the day, Indian Rupee depreciated 3 paise to close at a record low of 88.79 levels against greenback.

Both the Nifty Midcap and Smallcap 100 Index ended flat mirroring the benchmark index. Market breadth turned positive after six sessions, with advancing shares outnumbering declining ones, as reflected in a BSE advance-decline ratio of 1.01.

Nifty remains in a downtrend, trading below all key moving averages. Supports for the Nifty are seen at 24540 and 24400. On the upside, 24791 and 24908 could offer resistance in case of pullbacks.

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

Source: HDFC Securities Prime Research