Market Update: Nifty Breaks 14-Day Winning Streak, Closes Below 25,200; Sensex Drops 203 Points

The Indian stock market faced a setback as global trends weighed heavily, leading to a negative close on September 4. The Nifty ended its 14-day winning streak, closing below the crucial 25,200 level. In contrast, the Sensex dropped by 203 points, signalling a bearish trend across most sectors except for a few like realty, FMCG, and pharma.

Market Overview

Nifty and Sensex Performance

• Nifty: Closed at 25,198.70, down 81.10 points or 0.32%.
• Sensex: Ended at 82,352.64, down 202.80 points or 0.25%.

The Indian indices started the session with a gap-down opening due to weak global cues and traded in the negative zone throughout the day. Despite an afternoon recovery, the market closed on a weak note.

Sectoral Performance

• Gainers: Realty, FMCG, and pharma sectors saw gains of 0.5% each.
• Losers: Auto, bank, energy, IT, and metal sectors were down by 0.4-1%.

Top Gainers and Losers

• Top Nifty Gainers: Asian Paints, Grasim Industries, HUL, Apollo Hospitals, Sun Pharma.
• Top Nifty Losers: Wipro, Coal India, ONGC, Hindalco Industries, M&M.

Technical Analysis

Nifty 50 Outlook

The Nifty broke its upward trend by falling below the trend line on the hourly chart. However, it found initial support at the historical swing high. Going forward, the index may consolidate between 25,080 and 25,250.

• Support Levels: 25,100 and 25,000.
• Resistance Levels: 25,300 and 25,350.

A drop below 25,080 could trigger further correction towards 24,800-24,750/24,500, while a move beyond 25,236 might induce a rally toward higher levels.

Bank Nifty Outlook

The Bank Nifty underperformed, erasing all its previous day’s gains and closing 289 points lower at 51,400. It formed a Doji-like candlestick pattern, indicating indecision among bulls and bears.

• Support Levels: 51,250 and 51,000.
• Resistance Levels: 51,750 and 52,000.

Expert Insights

Rupak De, Senior Technical Analyst, LKP Securities

• The recent fall in Nifty could be seen as a breather with no alterations to the ongoing trend. The index is likely to consolidate further, with strong support around the 25,100-25,080 zone.

Ajit Mishra – SVP, Research, Religare Broking

• The Nifty’s pullback after the setback represents a positive scenario. Bulls are still holding ground, but global pressures could lead to further consolidation.

Options Data Analysis

• Call Open Interest: Maximum at 25,300, followed by 26,000 and 25,500 strikes.
• Put Open Interest: Maximum at 25,000, followed by 25,100 and 24,500 strikes.

The options data suggests that 25,300 is likely to be an immediate resistance level for the Nifty 50, with immediate support at 25,100 and then 25,000.

Conclusion

The Indian stock market’s bearish trend indicates potential consolidation in the coming sessions. Investors should remain cautious and focus on stock selection and trade management, with crucial support levels at 25,100 and 25,000.