Nifty Rebounds, Ends Three-Day Losing Streak

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty snapped its three-session losing streak, gaining 140 points to close at 25,898. The index breached its 50-DEMA support within the first half hour of trade but staged a strong rebound, recovering nearly 229 points from the early morning low of 25,693 to finish firmly near day high.

From the Nifty constituents, Adani Enterprises, Jio Financial Services, and Tata Steel were the top performers, while Asian Paints, SBI Life, and Bharti Airtel faced selling pressure and ended as key laggards. Except for Nifty Media and Oil & Gas, all sectoral indices closed in positive territory. Among them, Auto, Metal, Pharma, and Consumer Durables stood out with the most gains.

NSE cash market turnover declined 17% from the previous session, marking its lowest level in four months.

Broader market participation improved, with the Nifty Midcap 100 advancing 1% and the Nifty Smallcap 100 rising 0.8%. Market breadth turned positive as advancing stocks outnumbered decliners, lifting the BSE advance-decline ratio to 1.40, signaling a revival in buying interest following the previous session's correction.

The rupee plunged 41 paise to close at a record low of 90.37 against the US dollar. The decline was driven by robust dollar demand from importers, especially those in the precious metals segment, amid a surge in global metal prices.

Over the past three sessions, Nifty has been consistently testing and attempting to hold the 50-DEMA, currently placed at 25,735, indicating a phase of consolidation around this key support zone. A decisive move below 25,735 could trigger further downside towards the next support levels at 25,663 and 25,450. On the upside, the 20-DEMA at 25,956 is likely to act as immediate resistance, while 26,202 remains a positional hurdle for the bulls.

Source : Equity Bulls

Keywords

Nifty Sensex HDFCSecurities NSE BSE