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What is the story about?
After showing a reasonable recovery from the lows on Wednesday, the benchmark Nifty50 index failed to sustain its early gains on Thursday and closed 40 points lower at 23,873 amid lacklustre trading. This marked the index's fourth consecutive session of losses.
The Nifty opened 83 points higher but failed to hold on to its gains, reversing sharply and falling more than 150 points from the day's high before settling in negative territory.
The Closing Auction Session (CAS) further weighed on the index, with the Nifty falling nearly 30 points during the session.
Among Nifty50 constituents, Adani Ports, Axis Bank and HDFC Bank were the top gainers, while Bajaj Auto, Tech Mahindra and Trent were the biggest laggards.
Sectoral performance was mixed, with Realty, Media and Chemicals emerging as the top gainers, while IT, FMCG and Auto stocks faced selling pressure.
Broader markets bucked the weakness in the benchmark, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.37% and 1.20%, respectively.
The rupee posted its biggest single-day gain since July 27, appreciating 49 paise to ₹94.48. The move was supported by heavy capital inflows under the RBI's concessional swap scheme, which attracted $136.4 billion, well ahead of market expectations. A softer dollar and steady crude prices also provided support.
Nifty outlook
"Today's follow-through selling reinforces the near-term downtrend, with Nifty trading below all key moving averages, reflecting sustained selling pressure and weak sentiment," said Nandish Shah of HDFC Securities.
Shah said the index faces strong resistance in the 24,000-24,200 zone, which has now become a critical supply area for any recovery. On the downside, a decisive break below 23,800 could open the way towards 23,600. However, holding above 23,800 could lead to short-term consolidation within the broader downtrend.
Shrikant Chouhan of Kotak Securities said weak sentiment is likely to persist as long as the market trades below 24,000/76,700. On the downside, the index could slip towards 23,800-23,750/76,000-75,700.
On the upside, a sustained move above 24,000/76,700 could improve sentiment and trigger positive momentum towards 24,100-24,150/77,000-77,200, Chouhan said.
According to Nagaraj Shetti of HDFC Securities, the underlying trend continues to remain weak amid choppy trading. A sustained move below 23,800 could drag the Nifty towards the next support at 23,600, which corresponds to the opening upside gap formed on June 15.
Immediate resistance is placed at 24,100, Shetti said.
Rupak De of LKP Securities also expects potential weakness in the near term. On the downside, support is placed at 23,850, below which the index could decline towards 23,700-23,730. On the higher side, resistance is seen at 24,000.
"A sustained move above 24,000 would be required to negate the immediate bearish bias," De said.
Bank Nifty outlook
Meanwhile, the banking benchmark Bank Nifty ended Thursday on a positive note. However, the index has remained range-bound over the past 21 trading sessions, oscillating within a band of approximately 1,254 points.
Going forward, the 57,900-58,000 zone is likely to act as an immediate resistance area. On the downside, the 56,900-56,800 zone remains an important support, said Sudeep Shah of SBI Securities.
The Nifty opened 83 points higher but failed to hold on to its gains, reversing sharply and falling more than 150 points from the day's high before settling in negative territory.
The Closing Auction Session (CAS) further weighed on the index, with the Nifty falling nearly 30 points during the session.
Among Nifty50 constituents, Adani Ports, Axis Bank and HDFC Bank were the top gainers, while Bajaj Auto, Tech Mahindra and Trent were the biggest laggards.
Sectoral performance was mixed, with Realty, Media and Chemicals emerging as the top gainers, while IT, FMCG and Auto stocks faced selling pressure.
Broader markets bucked the weakness in the benchmark, with the Nifty Midcap 100 and Nifty Smallcap 100 gaining 0.37% and 1.20%, respectively.
The rupee posted its biggest single-day gain since July 27, appreciating 49 paise to ₹94.48. The move was supported by heavy capital inflows under the RBI's concessional swap scheme, which attracted $136.4 billion, well ahead of market expectations. A softer dollar and steady crude prices also provided support.
Nifty outlook
"Today's follow-through selling reinforces the near-term downtrend, with Nifty trading below all key moving averages, reflecting sustained selling pressure and weak sentiment," said Nandish Shah of HDFC Securities.
Shah said the index faces strong resistance in the 24,000-24,200 zone, which has now become a critical supply area for any recovery. On the downside, a decisive break below 23,800 could open the way towards 23,600. However, holding above 23,800 could lead to short-term consolidation within the broader downtrend.
Shrikant Chouhan of Kotak Securities said weak sentiment is likely to persist as long as the market trades below 24,000/76,700. On the downside, the index could slip towards 23,800-23,750/76,000-75,700.
On the upside, a sustained move above 24,000/76,700 could improve sentiment and trigger positive momentum towards 24,100-24,150/77,000-77,200, Chouhan said.
According to Nagaraj Shetti of HDFC Securities, the underlying trend continues to remain weak amid choppy trading. A sustained move below 23,800 could drag the Nifty towards the next support at 23,600, which corresponds to the opening upside gap formed on June 15.
Immediate resistance is placed at 24,100, Shetti said.
Rupak De of LKP Securities also expects potential weakness in the near term. On the downside, support is placed at 23,850, below which the index could decline towards 23,700-23,730. On the higher side, resistance is seen at 24,000.
"A sustained move above 24,000 would be required to negate the immediate bearish bias," De said.
Bank Nifty outlook
Meanwhile, the banking benchmark Bank Nifty ended Thursday on a positive note. However, the index has remained range-bound over the past 21 trading sessions, oscillating within a band of approximately 1,254 points.
Going forward, the 57,900-58,000 zone is likely to act as an immediate resistance area. On the downside, the 56,900-56,800 zone remains an important support, said Sudeep Shah of SBI Securities.
