Domestic equities closed marginally lower on Tuesday as weakness in financial and consumer shares outweighed gains in the IT pack. The Nifty 50 slipped 31.95 points, or 0.14%, to finish at 23,618, while the BSE Sensex declined 114.19 points, or 0.15%, to settle at 75,200.85. According to The Economic Times, the volatility gauge India VIX ended at 18.68, down by 4.86% from the last closing, indicating reduced market uncertainty. The Nifty IT index has gained 6% over the last two sessions, with largecap names like Infosys and Tech Mahindra each gaining over 7%, while TCS and HCLTech contributed with 3% and 4% gains respectively, ensuring the Nifty manages to sustain above key support levels despite broader market challenges.
The Nifty crossed its 50-day moving average of 23,769 intraday but failed to sustain above these levels despite multiple attempts. According to reports from CNBC TV18, the index is currently trading in a range of 23,587 to 23,782 from Tuesday's session, which will be crucial for bulls to break out from. Below the 23,587 support level, the index could find support at the 23,500 mark, while above 23,782, the index would need to sustain above 23,800 before attempting to conquer the 20-day moving average around 24,000. As per The Economic Times, the index faced resistance near the 20 EMA, which triggered profit booking in the latter half of the session, with the hourly RSI remaining in a bearish crossover and continuing to trend lower, indicating weakening momentum.
The Nifty Bank is experiencing significant volatility, trading in a 450-point range on Tuesday and declining in seven out of the last eight trading sessions. According to CNBC TV18, the index has been the key culprit behind the Nifty ending Tuesday's weekly expiry session in the red. SAMCO Securities reports that the index will look to hold support at 53,000, while 54,000 continues to act as resistance, with the near-term outlook remaining range-bound as long as the index trades below all major moving averages. The Economic Times notes that while Sensex settled with minor declines dragged mainly by HDFC Bank, Reliance Industries (RIL) and Kotak Bank, the broader markets breadth stayed positive with 2,544 stocks witnessing advances, 1,645 seeing declines out of the 4,352 stocks that traded on BSE.
Market experts maintain a cautious stance with multiple analysts expecting bearish sentiment in the short-term. LKP Securities expects the overall sentiment to be tilted towards bears until the Nifty decisively crosses 23,800, with support at 23,400 and potential intensification below that level. As per Rupak De, Senior Technical Analyst at LKP Securities, the 23,800 zone continues to act as a crucial resistance level, and unless the index decisively moves above it, sellers may regain control at any point. Religare Broking suggests maintaining a cautious stance until the index decisively reclaims the 24,000 mark, with immediate support in the 23,250-23,450 zone. The market faces multiple headwinds including weakening currency, high global bond yields, and rising oil prices, though it has not capitulated under pressure so far.
With earnings season entering its final stages, several major companies are reporting results this week. As reported by CNBC TV18, Apollo Hospitals and Grasim are major names reporting results on Wednesday from the Nifty 50, while broader market stocks include Lenskart, Sammaan Capital, Whirlpool India, JK Lakshmi Cement, IRB Infra, and Epack Durables. Additionally, BEL's management commentary on guidance for financial year 2027, along with BPCL, Zee Entertainment, Orkla India, PI Industries, and Hatsun Agro, will be key for market direction. The Economic Times reports that GAIL (₹300 crore), Apollo Hospitals Enterprise (₹252 crore), Reliance Industries (₹170 crore), Vodafone Idea (₹145 crore), Infosys (₹117 crore), and MTAR Technologies (₹106 crore) were among the most active stocks on BSE in value terms.
