Nifty shrugs off weak global cues; Ends with minor losses

After opening 117 points lower, Nifty extended its decline in the initial trades to touch an intraday low of 25,904. However, the index demonstrated remarkable resilience, staging a sharp recovery from the lows. It clawed back over 140 points to close near the session's high with a minor loss of only 19 points at 26,027. Cash market volumes on the NSE were notably lighter, down 8% compared to last Friday.

Indigo, Trent, and Hindustan Unilever led the pack of Nifty gainers, while selling pressure was concentrated in M&M, Eicher Motors, and ONGC, which ended as the major losers.

Sectoral performance was a mixed bag. Media, FMCG, and Consumer Durables ended the day as the top performers. Conversely, Auto, Pharma, and Financial Services were under pressure and ended as major losers.

Midcap and smallcap indices held steady near prior closing, with Nifty Midcap 100 off 0.12% and Nifty Smallcap 100 up 0.2%. Market breadth remained strong for the third consecutive day, with the BSE Advance-Decline Ratio at 1.11, suggesting continued selective interest and rotation into Mid/Small space.

The rupee weakened for a fourth straight day, depreciating 31 paise to a record low, positioning it as the worst performer among the Asian currencies. Despite the better-than-expected trade balance number, the rupee was unable to find support. This lack of resilience is primarily attributed to a significant demand-supply imbalance, driven by high dollar demand from importers and persistent capital outflows.

During the session, Nifty briefly slipped below its 20-day exponential moving average (20-DEMA) placed at 25,965 but managed to recover and close decisively above it, a sign of resilience among market participants.

At present, the index continues to respect the downward sloping trendline drawn by connecting the recent swing highs. A sustained move above 26,058 would signal a short-term bullish breakout and open the path for higher targets of 26,202 and 26,330. On the downside, the 25,900 level is expected to act as short term support.

Source : Equity Bulls

Keywords

HDFCSecurities Nifty Sensex BSE NSE