Market Commentary (closing) for 08th July 2026 by Bajaj Broking Ltd
Market Closing Commentary
Indian benchmark indices opened on a weak note and extended their losses throughout the session. Selling pressure intensified in the second half following fresh geopolitical escalation, triggering broad-based risk aversion across the market. The Nifty slipped below key near-term support levels and closed near its day's low, reflecting a sharp deterioration in market sentiment.
At close, the Nifty 50 declined 2.12% to settle at 23,882, while the Sensex fell 2.15% to close at 76,503.60. On the sectoral front, all major sectoral indices ended in negative territory. Nifty FMCG and Private Banks emerged as the biggest laggards, witnessing significant selling pressure. Although Nifty Metal outperformed relative to other sectors, it too ended the session in the red as widespread selling prevailed across the market.
The broader market also witnessed heavy selling pressure. The Nifty Midcap 100 index declined 1.55%, while the Nifty Small cap 100 index fell 2.24%, indicating sharper weakness in the broader market and heightened risk-off sentiment among investors.
Nifty Outlook
Nifty formed a sizable bearish candle with a lower high and a lower low and a bearish gap above its head (24,348-24,300). Index in the process gave up its entire recent gains to close around the 23,850 levels amid renewed geopolitical tensions between the US and Iran. The index in the morning trade breached the support area of 24,250 and dragged sharply lower in the second half of trade to test key support level of 23,800 during intraday trade.
Going ahead, a breach below the key support area of 23,800 will open further downside towards the 23,500-23,600 levels in the coming sessions being the confluence of the previous gap area and 61.8% retracement of the entire previous up move 23,070-24,530. While holding above 23,800 will lead to consolidation in the range of 23,800-24,350. Immediate bias remains down below Wednesday’s gap down area of 24,350.
Bank Nifty Outlook
Bank Nifty formed a sizable bearish candlestick pattern with a lower high and a lower low and a bearish gap below its head (58,200-58,075) signalling selling pressure at higher levels as the index closed below the 57,000 levels.
Index contrary to our expectations closed below the immediate support area of 57,000-56,800 signaling corrective bias. A follow through weakness will open further downside towards 55,500-56,000 levels in the coming sessions. On the higher side only a move above 58,000 will signal resumption of the up-move failure to do so will lead to some consolidation in the range of 55,000-58,000 levels.The daily stochastic has also generated a sell signal highlighting corrective bias.
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