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Market Closing Commentary  

Indian benchmark indices ended the session on a subdued note, with profit booking in heavyweight financial stocks weighing on the benchmarks despite resilience in the broader market. On a weekly basis, however, the market wrapped up on a positive note, with the broader trend remaining constructive. Small cap stocks continued to outperform, while PSU Banks emerged as one of the strongest-performing sectors during the week. At close, the Nifty 50 declined 0.27% to settle at 24,570, while the Sensex fell 0.58% to close at 78,499.

On the sectoral front, Nifty Auto and IT emerged as the top gainers, witnessing sustained buying interest throughout the session. On the downside, Private Banks, FMCG, and Financial Services remained the key laggards, as profit booking in heavyweight stocks capped the market's upside. The broader market continued to display resilience despite weakness in the benchmark indices. The Nifty Midcap 100 index gained 0.22%, while the Nifty Small cap 100 index edged lower by 0.05%. Both broader market indices continued to hover near their all-time highs, reflecting sustained investor interest and relative outperformance compared with the frontline indices.

Nifty Outlook

Nifty traded with a corrective bias and closed below the 24,600 marks. On the daily chart, the index formed an Inverted Hammer candle with a long upper shadow, indicating profit booking at higher levels. The broader trend continues to remain positive, as Nifty is sustaining above the breakout zone of the three-month triangular pattern. Going ahead, holding above the 24,300–24,400 support zone could trigger a pullback towards the previous week’s high of 24,800. A decisive breakout above 24,800 would confirm the resumption of the uptrend, opening the way towards 25,000–25,200.

However, failure to surpass 24,800 could extend the ongoing consolidation within the 24,800–24,300 range. On the downside, 24,400–24,300 remains the immediate support zone, supported by the previous week’s low and the 20-day EMA. A sustained break below 24,300 would weaken the near-term setup and extend the corrective move towards the psychological 24,000 level.

Bank Nifty Outlook

Bank Nifty formed a bearish candle with a long upper shadow, indicating profit booking at higher levels as the index continues to consolidate around the 58,000 mark. The index remained within last week’s 57,300–58,300 range, with 58,000 continuing to act as an immediate hurdle.

The broader consolidation range remains intact between 56,500 and 58,700. Going ahead, holding above 57,500–57,300 would keep the near-term bias constructive and could trigger a pullback towards 58,000. A sustained move above 58,000 would strengthen the momentum and open the way towards 58,300, followed by 58,700. On the downside, a decisive break below 57,500–57,300 (20 days EMA & Previous week low) would weaken the structure and extend the corrective move towards 57,000–56,500, which forms the lower band of the broader consolidation channel.

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