Nifty Stages Modest Recovery Amid Persistent Volatility

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Following yesterday's sharp decline, the Nifty staged a modest pullback, rising 57 points to close at 25,782. The index kicked off the day with an 88-point gap-up, scaling an early high of 25,652. However, the optimism was short-lived as aggressive profit-booking dragged the Nifty down over 200 points to a low of 25,428. In the final hours, the index entered a narrow consolidation phase, underscoring the lack of clear directional conviction.

Bajaj Auto, Hcl Tech, and Tata Steel topped Nifty gainers, while SBI, Reliance, and Adani Ports buckled under selling pressure as top losers

Sectoral performance was mixed: Metal, Pharma and Auto posted the strongest gains. On the other hand, PSU Banks, FMCG and Realty remained under pressure.

Midcap and Smallcap 100 indices outpaced the Nifty, rising 0.58% and 0.94%, respectively. Market breadth turned strong, with the NSE advance-decline ratio finishing at 1.15.

The ongoing volatility leaves the Nifty range-bound in the short term between 25,300 and 25,700, with a decisive break in either direction likely to trigger the next meaningful move.

Source : Equity Bulls

Keywords

HDFCSecurities MarketCommentary Nifty Sensex