The Nifty continued to slide, dropping another 114 points and hitting an intraday low of 24,824. But after 10 am, the index staged a strong comeback, climbing 233 points from the day’s low. Despite the rebound, it still ended the day down by 141 points at 24,972.
While selling pressure dominated the early part of Monday’s session, the Nifty managed to stay within Friday’s trading range and closed 32 points above its opening mark. However, the index couldn’t sustain the intraday recovery, closing below the key 25,000 level.
Trent, BEL, and Hindalco emerged as the top gainers on the Nifty, while Infosys, HCL Technologies, and Larsen & Toubro were the session’s biggest laggards.
The broader market outperforms the Nifty and Sensex for the second straight session. The Nifty Midcap 100 Index rose 0.36%, while the Nifty Small cap 100 Index gained 0.70%.
Shares of Indian IT companies, Infosys, TCS, Wipro, and their peers fell about 3% today, following results of Accenture that were reported last week on Friday. Infosys was the top loser on the Nifty IT index with a 2% cut while shares of HCL Tech, TCS, Oracle Financial fell between 1% and 2%.
From Bajaj Auto to TVS Motor Company and Hero MotoCorp, auto stocks declined after the government proposed mandatory Anti-lock Braking System (ABS) for all new two-wheelers.
Diagnostic stocks like Dr Lal PathLabs and Metropolis Healthcare fell up to 4%, following Amazon’s foray into the sector. Amazon Diagnostics is now available in six cities: Bengaluru, Delhi, Gurgaon, Noida, Mumbai, and Hyderabad.
Shares of BSE rose 3%, IndiGo gained over a percent on likely Nifty50 inclusion in the semi‑annual review in August.
Looking ahead, in the absence of any major domestic triggers, global market performance and crude oil price movement will be key in setting the tone, said Ajit Mishra of Religare Broking.
As long as the Nifty stays below the hurdle of 25,100-25,200 levels, there is a possibility of choppiness in the market, said Nagaraj Shetti of HDFC Securities. “A decisive move above this hurdle could only open renewed buying enthusiasm in the market. Further consolidation from here could find strong support around 24,800 levels.”
For the day, the Nifty managed to close above the support level of 24,850, and Indian equities may continue to offer buying opportunities as long as the Nifty sustains above this level. On the higher side, if it moves above 25,000, it may head towards 25,350 in the short term, said Rupak De of LKP Securities.
Devarsh Vakil of HDFC Securities believes that the primary trend remains bullish despite short-term consolidation in the Nifty. “The recent swing low of 24,733 continues to serve as an immediate support, while the resistance band lies between 25,136 and 25,222.”
