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Benchmark indices experienced a choppy trading session on Thursday, ultimately ending with marginal gains. The Nifty50 kicked off on a firm footing, buoyed by broad-based optimism following sweeping GST reforms, which were perceived as a significant structural tax overhaul. The initial up move was driven by robust buying interest in auto and consumer staples. However, as the session progressed, profit-booking at higher levels and underperformance in select index heavyweights capped the upside. The Nifty50 settled at 24,734.30, up 19.25 points or 0.08%. Sectorally, the Nifty Auto index outperformed with gains of nearly 1%, while the FMCG pack posted modest gains of 0.25%. On the flip side, selling pressure persisted in IT, metals, oil & gas, realty, power, and PSU banks — each shedding between 0.5% and 1%. The broader markets underperformed the benchmarks, with the Nifty Midcap 100 and Smallcap 100 indices declining by 0.6% each, reflecting a risk-off sentiment among investors toward non-index constituents.

Nifty Outlook

The index formed a counter-attack bearish line candle highlights profit booking at higher levels after a gap up opening and a close near the previous session close. Going ahead, a follow through weakness below 24,700 will open further downside towards 24,500-24,400 levels. Overall, we expect the index to consolidate in the range of 24,400-25,000 amid stock specific actions. Immediate support is placed at 24,400-24,337 levels being the confluence of the recent lows and the key retracement area. A breach below the same will signal acceleration of decline towards the key support area of 24,000-23,800 levels in the coming week being the confluence of the 52-week EMA and the previous major lows and the previous major breakout area.

Bank nifty Outlook

 Bank Nifty formed a bear candle signaling consolidation as it failed to generate a follow through to previous sessions pullback. The index is seen consolidating around the 200 days EMA. Overall, we expect the index to extend consolidation in the range 53,300-55,000 in the coming sessions. Bank Nifty has immediate support at 53,500-53,300 levels being the confluence of the 200 days EMA and the low of May 2025. A breach below the same will signal acceleration of decline towards the key support area of 52,500-52,000 levels in the coming week.

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