Nifty Extends Choppy Streak, Closes Higher Amid Late Profit Booking

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty has continued its alternating pattern for the seventh consecutive session, posting gains after a prior decline. The index opened on a modestly positive note with a 17-point uptick and extended its gains by 164 points during the first half of the session. However, profit booking emerged in the latter half, leading to an intraday correction of 135 points from the day's high. Nifty eventually settled at 23,719, closing with a gain of 64 points. NSE cash market turnover declined by 7% compared to the previous session.

Among the heavyweight stocks, Shriram Finance, Axis Bank, and ICICI Bank led the gains, while Max Healthcare, Sun Pharma, and ONGC were the primary laggards.

Sectoral performance remained mixed. Nifty Private Bank, Financial Services, and Metal indices outperformed, whereas Healthcare, Media, and IT sectors lagged.

Broader markets displayed a mixed trend. The Nifty Midcap 100 index edged up by 0.14%, while the Nifty Smallcap 100 declined by 0.15%. Market breadth remained positive for the fourth straight session, with the BSE advance-decline ratio at 1.12, indicating continued buying interest in mid- and small-cap stocks.

On the currency front, the Indian rupee extended its gains for the second consecutive session, appreciating by 51 paise to close at 95.69 against the US dollar. This recovery is largely attributed to the Reserve Bank of India's active intervention following its USD/INR buy-sell swap announcement, along with easing geopolitical tensions that have softened imported commodity prices.

Technically, Nifty continues to exhibit a choppy trend and has once again failed to sustain above the key resistance level of 23,800. Immediate support is placed near 23,400, coinciding with an upward sloping trendline connecting recent higher lows. On the upside, a decisive close above 23,800 could pave the way for a pullback towards the 50-day EMA, currently positioned around 24,006.

Source : Equity Bulls

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