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Market Closing Commentary

Indian benchmark indices traded in a range-bound manner throughout the session, witnessing selling pressure at higher levels amid elevated volatility due to the monthly expiry of benchmark index derivatives. Despite intermittent buying interest, the indices failed to sustain gains and ended the session in negative territory. At close, the Nifty 50 declined 0.34% to settle at 23,865.75, while the Sensex fell 0.33% to close at 76,478.

On the sectoral front, Nifty IT and PSU Banks emerged as the key laggards, witnessing significant selling pressure during the session. On the positive side, Realty, Pharma, and Consumer Durables attracted buying interest and helped limit the downside in the benchmark indices. The broader market outperformed the frontline indices. The Nifty Midcap 100 index gained 0.37%, while the Nifty Small cap 100 index advanced 1.02%, indicating continued participation in the broader market despite weakness in large-cap stocks.

Nifty Outlook

Index has formed a third consecutive bearish candle with a lower high and a lower low signaling continuation of the corrective decline as the index tested the 50 and 20 days EMA. Nifty is currently placed around the immediate support area of 23,800-23,750 being the confluence of the previous gap area, last two weeks lows. Index holding above the support area will lead to a pullback towards the Tuesday’s high and current week high of 24,035 and 24,120 respectively in the coming sessions.

The key short-term support is placed at 23,500 being the recent major breakout area and key retracement of recent pullback, while on the higher side major resistance is seen at 24,500-24,600 levels being the high of April 2026 and 200 days EMA. We believe overall bias is positive and current breather should be used as a buying opportunity as we expect Nifty to gradually head towards the 24,500-24,600 levels in the coming weeks.

Bank Nifty Outlook

Index formed a third small bearish candlestick pattern with a lower high and a lower low signaling consolidation amid stock specific action. Index is seen consolidating around the high of April 2026.

The index needs to break above and sustain above last week's high to trigger a fresh up move towards the 59,200 level, being the 138.2% external retracement of the previous decline from 57,456 to 52,783. Failure to move above last week's high is likely to keep the index consolidating within the 57,000–58,500 range. 

The lows of the last two weeks are almost identical around the 57,000 mark, making it a crucial short-term support level. Going forward, the overall bias remains positive, and we expect the index to regain positive momentum over the upcoming sessions, hence the current breather should be used as a buying opportunity.

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