Nifty fell for the second straight day ; Midcap and Smallcap indices stage smart rebound

During the weekly expiry session, Nifty witnessed heightened volatility and finally ended the day at 25,839, down 120 points. The index opened 93 points lower and extended its decline by another 139 points, hitting an intraday low of 25,728. However, post 10 A.M., Nifty staged a strong recovery of 195 points, before facing another mild correction after 2 P.M. NSE cash market turnover was higher by 10% compared to yesterday.

From the Nifty pack, ETERNAL, Titan, and Adani Enterprises ended among the top gainers, while Asian Paints, Tech Mahindra and HCL Tech saw selling pressure and closed as key laggards.

Sectoral performance was a mixed bag, with Consumer Durables, PSU Banks and Realty indices finishing as major gainers, while Auto, Pharma and Healthcare sectors declined and emerged as the top losers.

The Nifty Midcap 100 Index rebounded sharply, recovering nearly 2% from its intraday lows to finally end the day with gains of 0.3%, while the Nifty Smallcap Index snapped a five-session losing streak with a more than 2.5% intraday recovery to close with over 1% gain.

Market breadth turned positive after seven sessions, with advancing shares decisively outnumbering decliners. BSE advance–decline ratio improving to 1.68, highest since November 26, 2025, signaling a sharp rebound in mid and small caps after sustained pressure.

The Indian Rupee has demonstrated a significant rebound, successfully dismissing a two-day decline by appreciating 19 paise to emerge as the top-performing currency among its Asian peers. The appreciation was driven by the unwinding dollar long positions. Further supporting the rupee was lower global crude oil prices and stronger regional currencies.

Technically, the index found support precisely at its 50-DEMA (25,728) and rebounded from that level, underscoring its short-term significance. Despite this recovery, Nifty continues to trade below its 5, 10, and 20 DEMA, which keeps the short-term trend tilted to the downside.

For the coming sessions, immediate resistance is placed in the 25,950- 26,000 zone, followed by a strong hurdle at 26,202. On the downside, today’s low of 25,728 will act as the key near-term support level.

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

Source : HDFC  Securities Prime Research