Market Outlook: A Day of Decline Amid Global Weakness
Technical Snapshot
On the backdrop of weak global sentiment, our market corrected sharply. The Nifty ends 204 points lower, while the Sensex was down by 645 points. Among sectors, Capital Market and FMCG indices corrected the most, shedding nearly 1.5%, whereas despite the weak sentiment, the Defense index outperformed, rallied 2.10%.
Technically, the Nifty and Sensex have formed bearish candles on daily charts and are holding a lower top formation on intraday charts, which is largely negative.
We believe that the intraday market texture is on the weaker side, but a fresh selloff is possible only after the dismissal of the 24,450/80,450 level or below 20-day SMA (Simple Moving Average).
On the higher side, 24,650–24,750/81,100–81,300 would be the key resistance zones for short term traders. Above this, a pullback rally could extend up to 24,850–24,900/81,500–81,800.
On the downside, if the market falls below 24,450/80,450, it could retest levels of 24,380-24,165/80,000 - 79,500.
The Bank Nifty is stuck in the range of 55,700 and 54,300. Below 54,300, it would fall to 53,700 with a minor support at 54,000. Around 55,700, our advice is to reduce long positions.
Expect volatility between 24,800 and 24,400.
Sector Performance
The following table shows detailed sector-wise performance:
| Sector | Detail |
|---|---|
Capital Market | Corrected the most, shedding nearly 1.5% |
FMCG | Corrected the most, shedding nearly 1.5% |
Defense | Outperformed, rallied 2.10% |
Banking | Top Performer |
Media | Top Performer |
IT | Lagging Sector |
Derivative Segment Insights
Market Recap
After a negative opening, Nifty gradually drifted lower through most of the session. However, buying momentum around 24,465 in the final hour led to a partial recovery. The index finally settled with a loss of 0.82%.
The Nifty Midcap 100 outperformed, ending with a smaller loss of 0.52%.
Options Market Insights
| Metric | Value |
|---|---|
Highest Call OI | 25,000 Call |
Highest Put OI | 24,500 Put |
Put-Call Ratio (PCR) | 0.830 |
Max Pain | 24,600 |
VWAP Range | 24,395 – 24,820 |
Higher Call writing compared to Put writing → Cautious Undertone
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