Nifty extends losses for third day, consumer durables and IT lead the decline

After opening higher on strong global cues, Nifty soon faced profit booking at higher levels, which persisted throughout the session. The index eventually closed with a loss of 100 points at 26,042. Turnover on the NSE’s cash market rose 27% compared to last Friday.

Tata Steel, Tata Consumer Products, and Asian Paints stood out as top gainers from the Nifty pack. In contrast, Adani Ports, HCL Technologies, and Power Grid came under selling pressure, ending among the key laggards.

Sectoral performance was largely weak, with only Media, FMCG, and PSU Banks managing to trade in the green. The steepest declines were witnessed in Consumer Durables, IT, and Realty.

The broader market also mirrored the weakness of Benchmark Indices, with Nifty Midcap 100 slipping 0.52% and Nifty Smallcap 100 falling 0.72%. Market breadth remained negative for the third consecutive session, as reflected by the BSE advance-decline ratio of 0.58, indicating a clear tilt toward declines.

Indian rupee extended its losing streak for the fifth straight session, depreciating 12 paise against greenback to close at 89.97. This move was driven by a shift toward risk aversion, coupled with typical month-end demand from importers and corporates in a relatively thin liquidity market.

Short term trend of the Nifty turned weak as it closed below its 20-day EMA placed at 25,993. However, the index continues to trade above its 50 DEMA support at 25,832 and is still maintaining a higher-top, higher-bottom structure on the daily chart, keeping the broader trend positive.

A sustained move below 25,726 would invalidate this bullish structure and can be used as a stop-loss reference for long positions, while on the upside, the 26,100–26,150 zone is likely to act as a near-term resistance band.

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Source: HDFC Securities Prime Research