Nifty snaps three day winning streak

After a flat start, buying lifted Nifty to an intraday high of 26,235 in the first hour. However, momentum shifted after 10:30 AM as correction set in, pulling the index down more than 100 points from its intraday highs. The Nifty finally ended the session with a loss of 35 point to close at 26,142. NSE cash market turnover declined 3% as compared to yesterday.

Trent, Shriram Finance and Apollo Hospital emerged as the Nifty’s top outperformers. On the flip side, Indigo, Adani enterprise, and Dr Reddy witnessed selling pressure and ended as major laggards.

Barring Nifty Media, Realty and Metal, all the sectoral indices ended in the red. Amongst them, OIL/GAS, Pharma, and IT fell the most.

The broader market presented a mixed picture as Nifty Midcap 100 slipped 0.60%, while the Nifty Smallcap index bucked the trend with a 0.3% gain. Market breadth turned weak after three days, reflected in a BSE advance-decline ratio of 0.79.

Following two days of consolidation, the Indian rupee depreciated 13 paise against the greenback, lagging its Asian peers on Wednesday. This decline was driven by a shift toward risk aversion, fueled by persistent capital withdrawals from foreign investors leading up to the holiday break, alongside heightened dollar demand from bullion importers.

Though Nifty witnessed profit booking at higher levels, short term trend of the Nifty remains positive, with bullish higher-top, higher-bottom structure on the daily chart. On the downside, the level of 26,000 is expected to act as a near-term support. On the higher side, 26240 level is likely to act as an immediate resistance, followed by 26,330.

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

Source : HDFC Securities Prime Research