Nifty Market Insights
The Nifty index commenced the trading session on a subdued note and oscillated within a remarkably restricted range, ultimately concluding at 25,776—a modest increase of 0.19%.
After the considerable gap-up opening witnessed in the preceding session, the index relinquished most of its gains within the initial moments and has since languished in a tight consolidation phase. Historically, such sustained narrow-range trading has often heralded a significant directional movement.
Despite the apparent lack of vigor, Nifty has consistently maintained its position above the 50-day Exponential Moving Average (EMA) for two consecutive sessions, suggesting a resilient support level at lower thresholds.
Sector Performance
On the sectoral front, Nifty Oil & Gas emerged as the standout performer, concluding the day with gains exceeding 2%. Likewise, Nifty Public Sector Enterprise (PSE) also recorded nearly a 2% increase.
Conversely, Nifty Information Technology (IT) suffered a decline of approximately 6%, rendering it the day’s foremost sectoral underperformer.
This selloff in the IT sector stemmed from apprehensions that advancements in artificial intelligence (AI) would intensify competition among software developers, particularly following the launch of a legal tool by U.S.-based Anthropic for its Claude AI chatbot.
In terms of individual stocks, Trent and Eternal showcased remarkable performance as the leading gainers within the Nifty cohort, while Infosys and Tata Consultancy Services (TCS) were identified as the major laggards.
Midcap and Smallcap Indices
The Midcap Index developed a bullish candlestick formation characterized by a relatively elongated lower wick, indicating burgeoning buying interest at lower price levels.
Notably, this demand materialized near the 20-day EMA, reinforcing its significance as a critical short-term support for the index. Conversely, Smallcap stocks outperformed both the Midcap and frontline indices.
The Smallcap Index exhibited a substantial bullish candle on the daily chart, signifying a heightened risk appetite among investors. Similar to its Midcap counterpart, Smallcaps found robust support around the 20-day EMA for the second consecutive session, underscoring persistent buying interest at reduced price points.
Market Breadth
The advance-decline ratio tilted favorably for bulls by the day’s conclusion, with 317 stocks from the Nifty 500 universe finishing in the positive territory.
Nifty Outlook
Looking ahead, immediate resistance for Nifty is anticipated within the 25,950–26,000 range. A decisive breakout coupled with robust follow-through beyond this zone could propel Nifty further upwards towards 26,200, and subsequently 26,400 in the near term. Conversely, the 25,600–25,550 range is poised to act as a significant support level.
Bank Nifty Analysis
Mirroring the price movements seen in Nifty, Bank Nifty also navigated through an exceptionally constrained range throughout the day, concluding at 60,238—up 0.33%.
The 58,800–58,900 range continues to serve as a resilient support area, having effectively held over the previous two trading sessions. Sustaining above this range has preserved the broader structural integrity, despite the subdued momentum.
For Bank Nifty, immediate resistance is positioned in the 60,500–60,600 bracket, marking a pivotal supply zone to monitor.
A sustained move above this area could facilitate further upward momentum towards 61,000, followed by 61,300 in the near term. Conversely, the 59,800–59,700 range is expected to provide substantial support.
Source link: Moneycontrol.com.
