Indian equity markets remained range-bound during Wednesday's session, with the NSE Nifty50 slipping below the crucial 24,300 mark to close at 24,207.75, down 126.80 points, or 0.52%. According to reports from The Economic Times, the index formed a Dark Cloud Cover pattern on the daily timeframe, raising the possibility of a bearish move in the coming days. However, the broader trend remains positive as the index continues to trade within a rising channel. The Sensex declined 183.15 points, or 0.24%, to settle at 77,472.94, snapping earlier momentum as headline indices slipped below key levels. Metal, PSU Bank, and Financial Services stocks advanced, while IT, FMCG, and Realty shares weighed on the benchmarks. The Nifty Midcap 100 declined 0.10%, while the Nifty Smallcap 100 gained 0.81% to scale a fresh all-time high, demonstrating relative strength in smaller segments despite largecap weakness.
Foreign institutional investors (FIIs) remained net buyers on Wednesday, purchasing ₹502.63 crore worth of Indian equities, while domestic institutional investors (DIIs) continued their aggressive buying spree with purchases of ₹6,425.16 crore, according to provisional exchange data. FIIs bought shares worth ₹17,520.49 crore and sold ₹17,017.86 crore during the session, while DIIs purchased shares worth ₹17,710.07 crore and offloaded ₹11,284.91 crore. With Wednesday's inflow, FIIs are now net buyers of about ₹5,792 crore in August so far, while DIIs remain far more dominant with August net buying standing at around ₹43,518 crore. Siddhartha Khemka from Motilal Oswal Financial Services noted that the broader market continued to show resilience despite weakness in largecaps, pointing to sustained buying opportunities and underlying liquidity support across mid-and-small-cap segments.
From a technical perspective, the Nifty formed a bearish candle with a small upper shadow, signalling profit booking at higher levels around last week's high and the 52-week EMA. As reported by Bajaj Broking Research, the index started Wednesday's session on a positive note but failed to sustain above last week's high of 24,360, subsequently giving up its intraday gains and closing around the 24,200 level. Failure to close above 24,360 is expected to keep the index in a consolidation phase between 24,000 and 24,350. However, a decisive close above 24,360 could signal an extension of the recent pullback towards 24,550 and 24,700 levels in the coming weeks. The immediate support zone for Nifty is around 24,000, while stronger support is placed at 23,800, supported by the confluence of the trendline joining the lows of the last four months, the previous major gap area and the 61.8% retracement of the previous up move from 23,606 to 24,774. Rupak De, Senior Technical Analyst at LKP Securities, noted that range-bound trading continues with sellers emerging at higher levels, with a fall below 24,130 potentially triggering a serious correction and dragging the Nifty towards 23,900 and 23,700.
Indian equity benchmarks are likely to remain range-bound on Thursday, August 27, after the domestic market ended Wednesday's session under pressure. According to Bajaj Broking Research, Indian equities are likely to remain in consolidation mode, given mixed global cues and key events ahead. Globally release of US Q2 GDP data, Inflation numbers and Nvidia's earnings announcement would be keenly tracked. Cooling Brent crude oil prices towards the $85 per barrel mark provided some relief to investors, but the absence of strong directional triggers kept market sentiment subdued. Investors are likely to focus on sectoral rotation and stock-specific opportunities in Thursday's session. Khemka added that persistent geopolitical uncertainties kept market participants cautious, with the overall index expected to extend the recent consolidation and trade in the broad range of 24,000-24,700 in the coming sessions.
Several companies are likely to remain in focus following key corporate developments, according to The Economic Times. Tata Power plans to challenge a recent court verdict, while Jio Financial Services has cited notable asset increases. Additionally, Bharat Electronics and Hindustan Copper are navigating their own corporate maneuvers and regulatory matters. Other companies including GK Energy, Max Healthcare Institute, ICICI Prudential AMC, Mold-Tek Packaging, Bharat Coking Coal, and Welspun Investments and Commercials are also expected to be in focus. These companies are likely to remain in focus on Thursday following key corporate developments, with the overall outlook staying optimistic despite technical signals pointing to potential bearish trends and mixed global cues.
