IGI Logo

Market Closing Commentary

Indian benchmark indices extended their losing streak, with the Nifty 50 declining for the fifth consecutive session and slipping below the crucial 23,800 mark. The market, however, recovered nearly 150 points from its intraday low as buying emerged at lower levels. Investor sentiment remained cautious amid escalating geopolitical tensions, with Brent crude oil surging nearly 10% during the week and briefly tested the $100 per barrel mark. Concerns intensified after former U.S. President warned of further attacks on Iran, while Iran reportedly rejected the U.S.-backed ceasefire proposal conveyed through Iraqi mediation. At close, the Nifty 50 declined 0.43% to settle at 23,767, while the Sensex fell 0.43% to close at 76,059.

On the sectoral front, Nifty Media and IT emerged as the top gainers, providing support to the benchmark indices through selective buying interest. On the downside, Auto and Metal stocks witnessed the sharpest selling pressure and remained the key laggards for the session. The broader market also ended in negative territory. The Nifty Midcap 100 index declined 0.30% to close at 61,622, while the Nifty Small cap 100 index fell 0.32% to settle at 18,874, reflecting cautious sentiment across the broader market.

Nifty Outlook

Index extended decline for the fifth consecutive session as it closed below the 23,800 levels. Nifty formed a bullish candle with a lower high and a lower low as it opened gap down at 23,666 levels but recovered some of its intraday decline to close around 23,770 levels highlighting buying demand at lower levels from oversold territory.

Immediate bias in the index remains down below 24,000 and Nifty to gradually head towards 23,600 and 23,500 levels being the confluence of the trendline support joining lows of April and June 2026, bullish gap area of 15th June 2026 and 61.8% retracement of the recent up move from 23,070-24,530. Going ahead, only a formation of higher high and higher low on a sustained basis and close above 24,000 levels will signal a pause in the downtrend of the last five sessions.

Bank Nifty Outlook

Bank Nifty formed a bullish piercing line candle as buying demand emerged around the 52 weeks EMA from the extreme oversold territory. Bank Nifty in the last 6 weeks is seen consolidating in the range of 56,500-58,700. Index breached the lower band of the range on Friday’s session to form an intraday low of 56,023, it however recovered during the session to close above 56,500 levels.  

A follow through weakness below the support area of 56,500-56,000 levels being the confluence of the lower band of the last 6 weeks range and 52 weeks EMA will lead to acceleration of decline towards 55,000 levels being the confluence of the trendline support joining previous major lows and the 61.8% retracement of the previous up move from 53,027-58,706. Structurally the index has already taken 4 weeks to retrace just 38.2% of the preceding up move from 53,027 to 58,706. A shallow retracement signals overall positive bias and a higher base formation in the current corrective decline. On the higher side 57,500 will act as an immediate hurdle while the upper band of the recent consolidation placed around 58,500-58,700 will act as a stiff hurdle in the index in the coming weeks.

Above views are of the author and not of the website kindly read disclaimer