Nifty Slips for Second Session on Weak Global Cues

Nifty Slips for Second Session on Weak Global Cues

Nifty extended its decline for the second consecutive session, registering a sharp loss of 167 points to close at 25,860. After opening 76 points lower on the back of weak global cues, the index remained under sustained selling pressure throughout the day and ended the session near the day’s low.

Bharti Airtel, Titan, and Tata Consumer topped Nifty gainers, while Axis Bank, Eternal, and JSW Steel bore the brunt of selling and ended as top losers.

Excluding Nifty Consumer Durables and Media, all sectoral indices closed lower, led by steep declines in Realty, Private Banks, IT, and Metals.

Midcap and Smallcap indices fell sharply alongside the benchmark, with the Nifty Midcap 100 slipping 0.93% and the Nifty Smallcap 100 correcting 0.9%. Market breadth became weak after three days, with the BSE Advance-Decline Ratio stood at 0.66, signaling a clear shift towards renewed risk-off sentiment and profit-taking in the Mid and Small-cap space.

The rupee weakened for a fifth straight day, depreciating 30 paise to close at a new record low. This weakness is primarily attributed to continuous Foreign Fund Outflows (FIIs) from the capital markets, coupled with persistent global risk aversion.

Over the past two 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.

The index is now inching towards its 50-day exponential moving average (50-DEMA) support, placed around 25,760. A decisive break below the 50-DEMA could trigger additional selling pressure and deepen the ongoing correction. On the upside, the 26,000 is likely to act as immediate resistance level.

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

Source : HDFC Securities Prime Research