Nifty Slips for Third Straight Session, Showed Resilience with Late Bounce back

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty extended its losing streak to a third straight session, slipping 37 points to settle at 26,140, but managing to close off the day's low. The index went through a choppy session, underscoring indecision and a clear tug-of-war between bulls and bears. A smart 86-point recovery in the last hour helped the index defend the crucial 26,100 support zone. NSE cash market turnover eased by about 3% versus the previous session.

Titan, along with IT heavyweights such as HCL Tech, Wipro and Tech Mahindra, ended as top gainers in the Nifty basket. In contrast, Cipla, Maruti, Tata Motors' passenger vehicle segment and Power Grid came under profit booking pressure and ended as losers.

Sectorally, the picture was mixed, with IT, consumer durables and pharma logging the strongest gains. Auto, oil & gas and realty, however, remained under pressure and ended as the top losers.

In the broader market, mid and small caps outperformed the frontline indices, with the Nifty Midcap and Smallcap 100 indices closing with gains of around 0.4%. The market breadth was marginally positive, as advancing shares slightly outpaced decliners, with the advance-decline ratio on the BSE at 1.01, pointing to renewed buying interest in the midcap and smallcap universe after two sessions of profit taking.

Indian rupee continued its appreciation for the second consecutive day, rising 29 paise against the US dollar to close at 89.88, marking its strongest single-session gain since mid-December. The move was largely driven by proactive central bank action, with the RBI stepping in aggressively to offset the impact of persistent foreign portfolio outflows.

From a technical perspective, despite the short-term softness, the broader positional trend remains bullish, backed by a pattern of higher tops and higher bottoms on the daily charts. On the upside, the recent swing high of 26,373 is likely to act as an immediate resistance level, while the 26,050-26,100 band is expected to offer strong near-term support.

Source : Equity Bulls

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