It was another disappointing session for the benchmark, with sellers continuing to dominate proceedings. After a muted start, selling pressure emerged early in the session. However, buying interest near crucial support levels helped arrest the decline in the second half, with the index consolidating thereafter.
The Nifty 50 extended its losing streak to seven sessions, declining 0.32% to close at 24,078. The broader market also remained under pressure, with the Nifty Midcap 100 and Nifty Smallcap 100 declining 0.2% and 0.5%, respectively. On the sectoral front, Nifty IT was the only sectoral gainer, rising 0.4% and snapping a four-day losing streak, supported by value buying and capital rotation into domestic IT stocks.
Nifty Capital Markets also outperformed, while Nifty India Defence and Nifty Energy were among the top sectoral laggards. Among individual stocks, HCL Tech and JSW Steel ended as the top Nifty gainers, while Max Health and Coal India were the biggest losers.
The Midcap index witnessed profit booking after hitting 64,139 on August 14. However, it managed to close above its 20-day EMA. The Smallcap index, meanwhile, has been consolidating in the 19,674-19,936 range since August 6. Both indices continue to outperform the benchmark, as reflected by the rising ratio lines against the Nifty.
Looking ahead, market participants remain cautious amid weak global cues, elevated crude prices and geopolitical tensions. Crude prices remained elevated at around $91.2 a barrel, while Asian markets traded lower, led by South Korea's Kospi, which fell more than 5%.
Geopolitical concerns also escalated after the 60-day deadline lapsed without a resolution, with both sides maintaining an aggressive stance. Higher long-term bond yields in the US, Germany and Japan are also weighing on emerging-market equities by improving the relative attractiveness of developed-market bonds.
According to Siddhartha Khemka of Motilal Oswal, the Nifty is expected to remain under pressure amid weak global cues, elevated crude prices and continued geopolitical tensions. For the Nifty, the 24,000 level has emerged as the key near-term support.
SBI Securities' Sudeep Shah sees immediate support in the 23,950-23,900 zone. A sustained break below this range could drag the index towards 23,750, followed by 23,600. On the upside, 24,230-24,250 is seen as the immediate resistance zone. Angel One's Hitesh Rathi said any bounce from current levels should be monitored for sustained buying interest rather than being treated as a confirmed reversal.
He sees immediate support at 24,040-24,000, followed by stronger support at 23,900. On the upside, resistance is seen at 24,200-24,300, followed by 24,400. LKP Securities' Rupak De also sees 24,000-24,050 as the immediate support zone. If this holds, the Nifty could stage a meaningful recovery.
However, a sustained break below 24,000 could intensify bearishness and drag the index towards lower levels.