Nifty Ends Six-Day Rally Amid Broad-Based Sell-Off

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty snapped its six-session winning streak, slipping 103 points to close at 25,910 as broad-based selling dominated the session. On this weekly expiry day, volatility stayed elevated, with sellers gaining control in the latter half of trade. Market activity picked up, with NSE's cash market turnover rising 17 percent compared to the previous session.

Among Nifty constituents, Bharti Airtel, Axis Bank, and Asian Paints ended with highest gains, while Tata Consumer Products, Tech Mahindra, and Jio Financial Services came under pressure, leading the laggards' list.

Sectorally, weakness was widespread as all major indices ended in the red, led by Realty, IT, and Metals. The broader market took a sharper hit, with the Nifty Midcap 100 slipping 0.60 percent and the Nifty Smallcap 100 falling over 1 percent. Market breadth deteriorated sharply as decliners outpaced advancers, driving the Advance-Decline ratio down to 0.54 on the BSE-it's lowest since November 6.

Nifty's daily chart formed a bearish Engulfing candlestick pattern, signaling early signs of a possible short-term trend reversal. A clear breakdown below the pattern's low of 25,876 could open the door for further declines toward the next support zone of 25,700-25,750. On the upside, unless Nifty reclaims today's high of 26,030, a cautious short-term stance remains warranted.

Source : Equity Bulls

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