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Market Closing Commentary

Indian benchmark indices opened on a strong note and extended gains during the first half of the session, with Nifty touching an intraday high of 24,261. However, heightened volatility owing to the monthly Sensex expiry triggered profit booking at higher levels, resulting in the indices surrendering most of their intraday gains and closing with marginal advances. Support to market sentiment came from the recovery in the Indian Rupee and crude oil prices remaining below the $74 per barrel mark. At the close, the Sensex gained 109.25 points (0.14%) to settle at 77,100.47, while the Nifty advanced 34.35 points (0.14%) to close at 24,056.00.

On the sectoral front, market breadth remained mixed. Nifty Auto emerged as the top-performing sector, followed by gains in FMCG and Realty stocks. On the other hand, weakness was witnessed in Oil & Gas, IT, Chemicals, and Media stocks, which capped the overall market upside. Broader markets underperformed the benchmark indices, reflecting profit booking across the broader spectrum. The Nifty Midcap 100 Index declined 0.55%, while the Nifty Small cap Index fell 0.47%.

Nifty Outlook

Index has formed a small bearish candle with a long upper shadow signaling profit booking at higher levels. Nifty started the session on a positive note and formed an intra-day high of 24261 in the midsession. However, profit booking at higher levels saw the index gave up most of its intraday gains and closed the session marginally higher.

Nifty in the coming session will face immediate resistance around 25,250-25,300 levels being the confluence of last week high and the gap down area of 8^th May 2026. While immediate support is placed at 23,900-23,800 levels being the confluence of last two weeks lows and 50 days EMA. We believe dips should be used as a buying opportunity. 

The key short-term support is placed at 23,500–23,600 zone. On the higher side major resistance is seen at 24,600 levels. Overall bias remains positive and we reiterate our positive stance as we expect Nifty to gradually head towards the 24,500-24,600 levels in the coming weeks.

Bank Nifty Outlook

Index formed a small bearish candlestick pattern with a higher high and a higher low signaling consolidation amid stock specific action. Going ahead bias remain positive and index to gradually head towards 59,200 levels in the coming sessions being the 138.2% external retracement of the previous decline 57456-52783.

The last two weeks lows are almost identical placed around 57,000 levels. Hence, immediate bias remains positive above the same. The daily 14 periods RSI remain in uptrend and is seen rebounding taking support at its nine periods average thus supports positive bias.

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