Nifty Rises for Third Straight Day, closes at three weeks high

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty rose for the third consecutive session, gaining 48 points to close at 25,776. After first 15 minutes of volatility, Nifty consolidated in the narrow band of 25700-25800 for entire session. NSE cash market volumes were lower by 22% as compared to yesterday.

Trent, Eternal, and ONGC led Nifty gainers, while IT heavyweights Infosys, TCS, and HCL Tech faced selling pressure as top losers.

All sectoral indices closed in the green except for IT and Healthcare, with Consumer Durables, Oil & Gas, and Metals spearheading the gains.

Nifty IT plunged nearly 6%, its steepest fall in six years, amid investor worries over AI competition for software firms following Anthropic' s legal tool launch for Claude AI.

Broad markets outperformed the benchmark as Nifty Midcap 100 gained 0.63%, and Nifty Smallcap 100 surged 1.27%. Market breadth remained positive for the second straight day, with a BSE advance-decline ratio of 1.82, signaling sustained buying appetite in the mid and small-cap segments.

The rupee snapped its two-day rally, depreciating 18 paise to 90.44, dragged by weak regional peers and rebounding commodity prices. Activity stayed muted ahead of Friday's RBI rate decision.

During the session, Nifty partially filled the gap formed yesterday between 25108-25641. Nifty has managed to close above its 50 DEMA, currently placed at 25647. Trend remains bullish for Nifty, as it is placed above key moving averages. Nifty's Key support lies in the 25,500-25,650 band, with resistance at 25,863 and 26,373.

Source : Equity Bulls

Keywords

Nifty IT HDFCSecurities Sensex Gainers Losers