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Market News:

* Tanfac Industries announced plans to set up a new chemical manufacturing facility in Tamil Nadu, with an investment of Rs.495 crore and a planned capacity of 20,000 tonnes per annum.

* Ashok Leyland inaugurated a new electric vehicle manufacturing facility in Lucknow, strengthening its presence in the electric mobility segment.

* Elecon Engineering reported its weakest revenue growth in six quarters, accompanied by margin pressure. EBIT margins contracted sharply by 720 basis points due to flat revenues, higher employee costs, and an unfavourable product mix.

Technical Summary:

The index began the session on a subdued note near the previous day’s closing level, but the lack of followthrough buying led to sustained selling pressure as the day progressed. As a result, the index extended its ongoing four-day bearish phase, indicating persistent weakness in market sentiment. The breakdown below crucial support levels and key short-term moving averages further highlights the loss of momentum and suggests that sellers continue to dominate in the near term. On the sectoral front, IT and Oil & Gas stocks showed relative resilience and managed to close in the green, offering some support to the broader market. However, this strength was overshadowed by pronounced weakness in Realty and Capital-Market stocks, which faced consistent selling pressure and emerged as the major laggards for-the day, reinforcing the cautious tone across the market.

Levels to watch:

The Nifty has its crucial resistance 25800 (Pivot Level) and 26000 (Key Resistance). While support on the downside is placed at 25600 (Multiple Touches) and 25500 (Key Support).

What should short term traders expect?

The Index can short below 25600 for the potential target of 25500 the stop loss of 25670 level.

Technical Data Points

NIFTY SPOT: 25704 (-0.67%)

TRADING ZONE: Resistance: 25800 (Pivot Level) and 26000 (Key Resistance).

Support: 25600 (Multiple Touches) and 25500 (Key Support).

STRATEGY: Bearish till below 26000 (Key Resistance).

BANK NIFTY SPOT: 59268 (-0.70%)

TRADING ZONE:

Resistance: 59600 (Pivot Level) / 60112 (Key Resistance)

Support: 58800 (Pivot Level) / 58400 (Key Support)

STRATEGY: Bullish till above 58800 (Pivot Level)

SEBI Registration number is INH000000081.

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