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Below the Quote on Market Commentary (closing) for 7th September 2026 by Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking

Market Closing Commentary

Indian benchmark indices opened on a flat note but remained under pressure throughout the session, with continued selling in large-cap stocks weighing on the benchmarks. Elevated crude oil prices, with Brent remaining near the $97 per barrel mark, along with the absence of any significant resolution to ongoing geopolitical uncertainties, kept investor sentiment cautious and restricted buying interest.

At close, the Nifty 50 declined 0.50% to settle at 23,779, while the Sensex fell 0.50% to close at 76,132.

On the sectoral front, Nifty Pharma emerged as the top-performing sector, supported by selective defensive buying. On the downside, Nifty Media, IT, Realty, and Metal remained the key laggards. Overall, most major sectoral indices remained muted to negative, reflecting broad-based caution and selling pressure.

The broader market delivered a relatively mixed performance. The Nifty Midcap 100 index declined 0.46%, while the Nifty Smallcap 100 index remained largely flat, gaining 0.02%. The resilience in smallcaps compared with the benchmark and midcap indices indicates continued selective buying interest in the smallcap segment.

Nifty Outlook

Index on the daily chart formed a bearish candle with a lower high and a lower low signaling continuation of the corrective decline as the index closed below the 23,800 levels.

Immediate bias in the index remains down and sustaining below 24,025 levels will open downside towards the key support area of 23,600-23,500 levels being the confluence of the previous major gap area and the low of July 2026.

On the higher side key resistance is placed at 24,150 levels being the confluence of the last week high and 50 days EMA, only a move above the same will signal a pause in the downtrend.

Key observation in the daily chart is that the daily stochastic and daily 14 periods RSI has approached oversold territory. Hence, index holding above the support area of 23,600 –23,500, will lead to a pullback towards the 50-day EMA placed around 24,150. 

Bank Nifty Outlook

Bank Nifty formed a bearish candle with a lower high and a lower low signaling continuation of the corrective decline.

Index in the immediate short term is seen trading in the range of 57,000-58,000 levels. A close below 57,000 will signal extension of decline towards the key short-term support area of 56,500-56,200 levels being the confluence of the 52 weeks EMA and the lower band of the last 9 weeks range.

Overall, the broader 9 weeks consolidation range remains intact between 56,500 and 58,700. We expect the index to extend the current consolidation and only a breakout or breakdown will signal a directional momentum.

Within the consolidation index is facing resistance around 58,000 levels. Index sustaining above 58,000 levels will open upside towards 58,500-58.700 levels. Failure to sustain above 58,000 levels will signal extension of range bound trade in the range 57,000-58,000 levels in the coming sessions.

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