Indian benchmark indices closed mixed on Wednesday, with the Sensex falling 456 points (0.58%) to 78,499 while the Nifty 50 declined only 65 points (0.27%) to 24,571. According to The Economic Times, the newly-launched closing auction session continues to create divergence among the benchmark indices. The Nifty Smallcap 100 closed in the red, while Nifty Midcap 100 gained 0.2%, showing mixed performance across market segments. Market breadth remained positive with 10 of the 16 major sectoral indices trading in the green, as reported by LiveMint.
According to The Economic Times analysis by Sudeep Shah, Vice President and Head of Technical & Derivatives Research at SBI Securities, the Nifty 50 formed a Doji candle on the weekly chart, reflecting indecisiveness among market participants. The index continues to trade above its key short-term and long-term moving averages, indicating that the broader trend remains constructive. The zone of 24,700-24,750 is likely to act as an immediate hurdle, with a decisive move above 24,750 potentially triggering a fresh rally towards the psychological level of 25,000. On the downside, the 200-day EMA zone of 24,400-24,350 is expected to provide strong support. For Sensex, the 79,100-79,200 zone remains a critical resistance area, with a sustained breakout above 79,200 potentially triggering an upside move towards 80,000.
Smallcap indices have demonstrated strong performance with the Nifty Smallcap 100 rising nearly 3% this week, outperforming midcaps and largecaps. As reported by The Economic Times, a key technical development was the breakout above a horizontal trendline resistance, signaling continuation of the prevailing uptrend. The index remains comfortably positioned above its key short and long-term moving averages, with momentum indicators maintaining a positive bias. The 19,550-19,500 zone will act as crucial support for the Nifty Smallcap 100, with potential upside targets at 20,100 and 20,400 in the short term. Investors should maintain a buy-on-dips approach, viewing any decline towards the support zone as an opportunity to accumulate quality smallcap stocks.
Jay Thakkar recommends buying Supreme Industries Futures in the range of ₹3,500-3,520 with a stop loss at ₹3,420 and targets of ₹3,650-3,720. As reported by LiveMint, the stock has provided a breakout from sideways consolidation and downtrend line breakout, indicating a trend reversal confirmed by falling open interest and short covering. The highest call base is at ₹3,700 levels with significant put additions at ₹3,300-3,500 strikes, providing positive risk-reward dynamics.
For L&T Finance Futures, Thakkar recommends buying in the range of ₹320-324 with a stop loss below ₹309 and targets of ₹335-345. According to LiveMint, the stock has been trending higher with long additions and has taken support at lower levels, indicating higher upside probability. The second target is ₹345 with significant put additions at ₹280 and ₹300 strikes acting as support. For Shriram Finance futures, the recommendation is to buy in the range of ₹1,070-1,090 with a stop loss below ₹1,045 and targets of ₹1,140-1,180. As reported by LiveMint, the stock has provided breakout from sideways consolidation with low open interest indicating high upside potential.
Since the RBI paused its rate-cut cycle on June 5, the Nifty 50 has rallied 5.1%, narrowing its year-to-date decline to 5.8%, according to Reuters. The rally has been supported by measures to stabilise the rupee and improve foreign capital inflows. The policy decision is scheduled to be announced at 10:00 IST, with the RBI expected to maintain its accommodative stance while monitoring inflation risks from volatile crude oil prices and weaker-than-normal monsoon conditions. According to The Economic Times, FII short covering could support markets, with the 24,800 level remaining an important resistance that could trigger further short covering by FIIs.
