The Nifty opened with a gap down and extended its decline to hit an intraday low of 23,606. Strong buying interest at lower levels, however, sparked a sharp rebound, allowing the index to settle at 23,767, down 0.43%. Importantly, this recovery came after the index filled the 173 point gap created between June 12–15, a technical milestone that often precedes decisive moves.
For the past 28 trading sessions, Nifty had been consolidating within a tight 24,531–23,785 band. Today’s close below the lower end of this range signals a breakdown, raising concerns about further downside. Technical indicators echo this caution: the RSI continues to slide, pointing to a gradual buildup of bearish momentum, while the MACD’s expanding red histogram bars reinforce the bearish bias. With Nifty now trading well below both short and long term moving averages, the broader setup suggests that sellers are gaining control.
On the sectoral front, Nifty Media ended the day as the top sectoral loser followed by Nifty IT. On the other hand, Nifty Auto & Nifty Oil & Gas ended the day as top sectoral losers. With regards to stocks, HCL Tech & Cipla ended up as top two gainers while Eternal & M&M ended the day at top losers.
Midcap and Smallcap indices also demonstrated strong recovery from day lows, underscoring investor confidence beyond frontline stocks. The Midcap index formed a bullish candle with a pronounced lower wick, reflecting buying interest and closed marginally above its 50 day EMA. Meanwhile, the Smallcap index bounced sharply from its 50 day EMA, highlighting the continued appetite for risk in the broader market. These moves suggest that while headline indices face technical challenges, market participants remain willing to accumulate at lower levels in the broader space.
The market breadth was relatively balance as the advance decline ratio was tilted in the favour of bears at day’s close. A total of 274 out of the Nifty 500 stocks ended in red, highlighting broad based weakness in the market.
Going ahead, the immediate support for Nifty is placed in the 23650-23600 zone. Any sustainable move below this zone could result in Nifty extending its weakness until 23450, followed by 23300 in the short term. On the upside, the immediate resistance for Nifty is placed in the 23950-24000 zone, which coincides with the 50-day EMA.
Bank Nifty View
Bank Nifty mirrored Nifty’s early weakness, opening lower and drifting down before a sharp pullback from intraday lows helped recoup losses. This rebound resulted in a sizeable bullish candle on the daily chart, with the index reclaiming its 200 day EMA, a key long term support level closely watched by traders. The sustainability of this pullback will be critical in determining whether sentiment in the banking space can improve meaningfully in the near term.
Going ahead, the immediate resistance for Bank Nifty is placed in the 57100-57200 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 57600, followed by 58000 in the short term. On the downside, the immediate support for Bank Nifty is placed in the 56300-56200 zone.
