View on Market Performance Nifty Snaps Six-Day Winning Streak

Nifty broke its six-session winning streak by falling 213 points or 0.85%, to close at 24870. However, in the last two trading sessions, Nifty witnessed a fall of 294 points from the weekly high of 25153.

In an otherwise weak market, Auto heavyweights M&M and Maruti, along with BEL, led the charge among the Nifty’s top performers. On the flip side, it proved to be a tough session for names like Grasim, Asian Paints, and Adani Enterprises, which ended as the major losers within the Nifty pack. Trading volumes in the NSE cash market were sharply lower today, down 15% compared to yesterday.

Amongst the sectoral indices, Nifty Media, Pharma and Healthcare emerged as major gainers. Conversely, sectors such as Nifty Metals, PSU Banks, and FMCG were the major losers for the day.

Indian Rupee depreciated for the third day in a row, falling by 26 paise against the dollar to close at 87.53 levels. The recent downturn in the domestic currency is being influenced by a combination of factors, including continued outflow of foreign funds, the anticipation of elevated tariffs from the US, and persistent dollar demand from importers.

While the broader market witnessed some profit booking today, it still managed to outperform with respect to the benchmark’s sharp fall. The Nifty Midcap 100 Index fell by 0.14%, while the Nifty Smallcap Index lost 0.26%. However, market breadth turned negative, with declining shares outnumbering advanced ones, as indicated by an advance-decline ratio on the BSE of 0.77. However, for the week, both indices ended with healthy gains of 2%.

On the weekly chart, Nifty has ended up forming a bearish “Shooting Star” candlestick pattern, which signals caution ahead. However, on the lower side, 50 DEMA placed at 24841, and the gap area between 24673 and 24852 could offer strong support to the Nifty. On the higher side, 25153 would continue to serve as a resistance.

Source: HDFC Securities – Prime End of the Day Summary

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