Indian equity indices ended lower on Tuesday, with Nifty closing at 24,583, up 13 points after a volatile, range-bound session. According to CNBC TV18, the index opened 11 points higher but came under selling pressure in the first 30 minutes before recovering more than 100 points from the day's low during the first half. The index subsequently gave up most of those gains in the latter part of the session before ending off the day's lows after a sharp 74-point surge during the Closing Auction Session (CAS). The Indian rupee started the week on a weaker note, depreciating 9 paise to close near ₹95.30 against the US dollar, with a stronger dollar and elevated commodity prices weighing on the currency. Among Nifty 50 constituents, Titan, Tata Consumer Products and Bajaj Finance were the top gainers, while SBI, Eternal and ITC emerged as the key laggards. Sectoral performance remained mixed, with Realty, Private Banks and Consumer Durables leading the gains, while PSU Banks, Oil & Gas and Healthcare were the biggest laggards.
According to Nagaraj Shetti of HDFC Securities, the short-term trend of the Nifty remains choppy with a weak bias, with any decline towards 24,300 presenting a short-term buying opportunity while 24,600 remains an immediate resistance level to watch for a turnaround. As reported by CNBC TV18, LKP Securities' Rupak De noted that the Nifty's fall below 24,400 had triggered a decline towards 24,250, where the index found support around its 200-hour SMA before recovering. Nandish Shah of HDFC Securities emphasized that the Nifty continues to oscillate between its 200-day SMA at 24,758 and 200-day EMA at 24,384, with the primary trend remaining bullish as the index trades above its 20-, 50-, 100- and 200-day DEMAs. A decisive breakout above the 200-day SMA or a breakdown below the 200-day EMA could determine the index's next directional move. The Put-Call Ratio (PCR) for the August series is likely below 0.85 after Tuesday's broad selling, with elevated put buying from protection-seeking institutions.
The market witnessed a clear sector split with Nifty IT gaining 0.61% and Nifty Pharma rising 1.02% on defensive rotation, while Nifty FMCG fell 1.17%, Nifty Auto declined 0.55%, and Nifty Metal dropped 0.95% due to crude input cost shock. According to TradingView News, Nifty Realty, FMCG and Metal declined 1% each, Nifty Infra slipped 0.8%, Nifty Private Bank declined 0.6%, and Nifty Bank shed 0.4%. The India VIX is estimated at 12.50-12.80, rising from Monday's 12.19, indicating elevated volatility with option sellers still active, though VIX below 14 confirms institutional sellers are distributing positions in an orderly fashion. More than 180 stocks touched 52-week highs, including Gland Pharma, Bosch, Aditya Infotech, Anthem Bioscience, Redington, Bajaj Auto, Titan Company, Syrma SGS, Paytm, and Aether Industries. The latest developments show crude oil hitting $88 per barrel amid US-Iran negotiations reaching a deadlock, adding to market pressure.
The Nifty IT index declined 0.92% to 31,350.95, reversing from its recent three-session rally where it had gained 2.3%. According to Business Standard, IT shares declined after attracting buying interest for three consecutive trading sessions, as investors booked profits following the recent gains. Major IT stocks underperformed with LTM down 1.39%, Mphasis down 1.21%, Persistent Systems down 1.2%, Coforge down 1%, TCS down 0.79%, Infosys down 0.51%, Wipro down 0.46%, and HCL Technologies down 0.3%. The profit booking in IT shares reflects investor caution after the sector's recent strong performance, with the market breadth remaining negative as 1,702 shares rose and 2,045 shares fell on the BSE.
The Nifty Bank index recovered from its initial weakness and moved higher, supported by buying in PSU banks. According to CNBC TV18, after facing resistance around the 57,750-57,790 zone, the index slipped to an intraday low of 57,470 before staging a sharp late-session recovery. The index eventually broke past its earlier intraday resistance and closed at 57,886, up 0.77%, significantly outperforming the benchmark. Going ahead, the immediate resistance for Bank Nifty is placed in the 58,300-58,400 zone, with a sustained move above this range potentially extending the pullback towards 58,800, followed by 59,200 in the short term. On the downside, the 57,400-57,500 zone is likely to provide immediate support. According to SBI Securities, benchmark indices are likely to remain range-bound amid elevated crude prices and the lack of progress towards a US-Iran resolution, while broader markets could continue to see stock-specific action and sectoral rotation as the final leg of the Q1FY27 earnings season plays out.
