Nifty & Sensex: IT Sector Gains While Market Faces Headwinds

Technical Outlook

The markets witnessed a bit of profit booking at higher levels. The Nifty closed 93 points lower, while the Sensex dropped by 213 points.

Sector Performance:

• The IT index was the top gainer, moving up by 0.64%.

• The Pharma and Healthcare indices took a hit, both shedding nearly 2%.

Market Sentiment:

Technically, a reversal formation on intraday charts and a bearish candle on daily charts indicate temporary weakness. As long as the market remains below 24,900 / 81,800, the weak sentiment may persist.

Key Support and Resistance Levels:

• Immediate Support: 24,775 / 81,200

• Immediate Resistance: 24,900 / 81,800

If the Nifty crosses 24,900 / 81,800, we could see a rally up to 25,000-25,100 / 82,100-82,500.

Derivatives Snapshot

Market Recap:

• Nifty opened positively but gradually lost steam through the session, closing with a 0.37% loss.

• Midcap 100 stocks underperformed, with a 0.66% loss.

Sector-wise Performance:

Options Market Snapshot

Key Insights:

• Significant Call OI: 25,000 Call

• Significant Put OI: 24,500 Put

• Put-Call Ratio (PCR): 0.84

• Max Pain: 24,850

• VWAP Range: 24,710 – 24,995

• Sentiment: Call writing with Put unwinding → Cautious Undertone

Index Futures Positioning

Institutional Activity:

Summary

The market has shown some signs of weakness, with the Nifty and Sensex retreating after strong gains. However, the IT sector has remained resilient. Traders should monitor the key support levels closely, as a break above 24,900 / 81,800 could signal a shift in market sentiment. Given the market tone, investors should proceed with caution in the coming days.