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Market Closing Commentary

Indian equity markets ended lower for the second consecutive session, with the Nifty slipping below the 24,250 marks amid cautious investor sentiment and mixed sectoral performance. The Sensex also closed in the red as weakness in select heavyweight stocks kept the benchmark indices under pressure. Additionally, Brent crude oil prices hovering near the $90 per barrel mark remained a key concern, raising fears of higher inflation and its potential impact on corporate margins.

At close, the Nifty 50 declined 0.21% to settle at 24,187, while the Sensex fell 0.31% to close at 77,470. On the sectoral front, auto emerged as the standout performer, supported by strong buying interest in leading automobile stocks. Realty and Chemicals also witnessed healthy gains. On the other hand, Financial Services, FMCG, and select Pharma stocks came under profit booking, while Metal and IT traded with a mixed bias throughout the session.

The broader market continued to display resilience despite the weakness in benchmark indices. The Nifty Midcap 100 index gained 0.30%, while the Nifty Small cap 100 index advanced 0.53%, indicating sustained buying interest in broader market stocks.

Nifty Outlook

Nifty on the weekly expiry session traded in a range with corrective bias and closed around the 24,200 levels. It has formed a high wave candle with small real body and shadows in either direction signaling consolidation for the second session amid stock specific action. Going ahead, index to extend the recent consolidation and trade in the broad range of 23,800-24,350 in the coming sessions. Within the consolidation 24,000-24,100 is the immediate support. We expect index to hold above the same and head towards the upper band of the range and last week high placed at 24,370 levels.

On the higher side only a breakout above 24,370 will open further upside towards the April high of 24,600. Short term support is placed at 24,000-23,800 levels, being the confluence of the almost identical low of the last 5 weeks and 50 days EMA. Index holding above the support area will keep the overall bias positive.

Bank Nifty Outlook

Bank Nifty formed a doji candle with a long upper shadow highlighting profit booking at higher levels as index continues to consolidate around the 58,000 levels. Index in the last 6 weeks is seen consolidating in the range of 58,700-56,500. Going ahead, only a move above the June high of 58,700 would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks. Failure to do so will signal extension of the last six weeks consolidation.

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