On the weekly expiry day, the benchmark index Nifty opened with a sharp gap-down and extended losses during the initial hour of trade, reflecting heightened volatility. However, the index managed to find support near its 50-day EMA, which triggered a recovery and helped recoup part of the early losses. This price action resulted in the formation of a High Wave candle on the daily chart, signalling indecisiveness and a lack of clear directional bias in the market.
Among the Nifty constituents, Eternal and Titan emerged as the top gainers, while Asian Paints and Tech Mahindra were among the major laggards. Sectoral performance was mixed, with Nifty Consumer Durables, Nifty PSU Bank, and Nifty Chemicals leading the gains, whereas Nifty IT and Nifty Auto ended as top losers.
A notable highlight of the session was the outperformance of the broader market after several muted days. The Nifty Midcap 100 closed higher by 0.32%, while the Nifty Smallcap 100 staged a strong rebound from oversold levels, ending up 1.14%. Market breadth improved significantly, with the advance-decline ratio tilting in favour of advancers. From the Nifty 500 universe, 323 stocks finished on a positive note, indicating improving sentiment across the broader market.
Going ahead, for Nifty, the zone of 25730-25700 will act as important support. If the index slips below the 25,700 level, it could trigger a deeper correction. On the upside, the zone of 25,950-26,000 will act as a crucial hurdle for the index. Any sustainable move above the 26000 will lead to an upside rally up to the 26,150 level.
The banking benchmark index, Bank Nifty, slipped below its 20-day EMA at the opening but managed to close the session above this key level. On the daily chart, it has formed a bullish candle with a minor upper shadow, indicating some buying interest despite early weakness. Going ahead, the zone of 58,900-58,800 will act as crucial support for the index. While on the upside, the zone of 59,600-59,700 will act as an important hurdle.