Nifty Falls Over 200 Points on Weak Global Cues; Closes at Two-Month Low

Mr. Nandish Shah - Deputy Vice President, HDFC Securities

Nifty slipped out of its four-session consolidation, declining 243 points to close at 23,123. After opening with a sharp gap-down of 286 points on the back of weak global cues, the index staged a strong early recovery of nearly 200 points from the day's low; however, momentum faded in the second half, with Nifty giving up most of its intraday gains. NSE cash market turnover declined 15% compared to the previous session.

Among Nifty constituents, Max Healthcare, Power Grid, and Bharti Airtel emerged as the top gainers, while Wipro, Jio Financial, and Eternal were the key laggards. Barring Nifty Healthcare, all sectoral indices ended in the red, with Realty, Media, and Auto leading the decline.

Broader markets fell more compared to benchmark indices, with the Nifty Midcap 100 and Smallcap 100 declining by 1.40% and 1.92%, respectively. Market breadth remained decisively negative, as reflected in the BSE advance-decline ratio, which slipped to 0.52, its lowest level since May 20.

The Indian rupee gave up most of its previous session gains, depreciating by 77 paise to settle at 95.71. The weakness was largely driven by escalating tensions in the Middle East, which pushed crude oil prices higher and boosted safe-haven demand for the U.S. dollar. Additionally, stronger-than-expected U.S. jobs data has reignited expectations of further rate hikes by the FOMC, dampening global risk appetite and lending further support to the greenback.

Technically, Nifty closed near the 61.8% retracement level (23,106) of the entire 2,200-point rally recorded in April 2026. The index continues to trade below all major moving averages, indicating a bearish bias across timeframes. Immediate resistance is placed at 23,300, while a break below 23,070 could intensify downside pressure toward the next support zone of 22,700-22,800.

Source : Equity Bulls

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