Indian equity markets are in a cautious mood today, tracking mixed global cues and a weak signal from GIFT Nifty. While US markets ended higher overnight and most Asian peers are trading with a mild positive bias, early indications suggest Indian equities do not share their outlook.
From a broader perspective, the market remains in a healthy consolidation phase after a strong rally. Technical indicators suggest the underlying trend is still positive, but near-term volatility cannot be ruled out as investors book profits near record levels.
Indian markets ended Wednesday’s session slightly lower, reflecting profit booking and consolidation.
Sensex fell 116.14 points, or 0.14 percent, to close at 85,408.70
Nifty 50 slipped 35.05 points, or 0.13 percent, to settle at 26,142.10
The Nifty opened flat at 26,170.70, moved up to an intraday high of 26,236.40, and then gradually drifted lower to touch a low of 26,123.00 before closing near the middle of the day’s range.
Sectoral performance remained mixed.
Gainers: Media, Realty and Metal stocks outperformed, supported by selective buying
Laggards: IT, Pharma and PSU Banks witnessed selling pressure
The absence of broad-based buying suggests investors are being more selective, focusing on specific themes rather than chasing the broader market.
From a technical standpoint, the Nifty continues to trade above its short-term moving averages, indicating that bulls still have the upper hand despite the ongoing consolidation.
Immediate support: Around 26,120
A decisive break below this level could trigger further short-term profit booking.
Immediate resistance: Near 26,235
A move above this zone could open the door for a fresh upside attempt.
Overall, the structure remains constructive as long as key supports hold.
Sector leadership remains narrow rather than broad-based.
Auto, FMCG, IT, Metal and Realty indices continue to show a positive structure on daily charts, with scope for gradual upside.
Media, PSU Banks and Pharma stocks are consolidating after recent corrections and are showing early signs of stabilisation.
Banking and Financial Services remain in a corrective phase, suggesting investors should stay cautious in the near term.
The Bank Nifty closed marginally lower at 59,183.60, down 115.95 points, or 0.20 percent, reflecting continued weakness in banking stocks.
Technically, the index remains range-bound.
Resistance: Around 59,200
As long as the index trades below this level, upside momentum may remain limited.
Support: Near 59,000, with strong positional support around 58,580, which could restrict deeper downside.
Institutional activity remained mixed in the previous session.
Foreign Institutional Investors (FIIs) were net sellers worth ₹1,721.26 crore
Domestic Institutional Investors (DIIs) stepped in with strong net buying of ₹2,381.34 crore
Sustained domestic inflows continue to provide stability to the market and may help cushion downside risks during periods of global uncertainty.
As of 7:15 am, the GIFT Nifty was trading at 26,105.50, down 71.50 points, indicating a negative opening bias for Indian equity markets.
US markets
Wall Street closed higher overnight, supported by selective buying.
Dow Jones gained 288.75 points to 48,731.16
Nasdaq Composite rose 51.46 points to 23,613.31
Europe
European markets ended mixed, with the DAX closing moderately higher, while the FTSE 100 and CAC 40 finished marginally lower.
Asia
Asian markets opened with a positive bias.
Japan’s Nikkei rose about 430 points, trading near 50,905
Hong Kong’s Hang Seng edged up to around 25,834
Crude oil traded higher near $62.32
Gold moved up to around ₹4,533
Silver strengthened near ₹74.95, indicating continued momentum in precious metals
In currency markets, the Dollar Index slipped slightly to around 97.93, while the rupee showed marginal strength, trading near ₹89.64 against the dollar.
Markets appear to be in a pause-and-consolidate mode after a sharp rally. While short-term volatility is possible, strong domestic institutional support and a favourable technical setup suggest that declines may continue to attract buying interest.
Investors may remain selective, focus on sectoral leaders, and keep a close watch on key support levels during the session.