Broader markets outperform with BSE Smallcap gaining over 1 per cent; BSE Consumer Durables witness buying interest!

Reliance Industries and ICICI Bank were the top two contributors in Nifty as they jointly contributed 33 points towards Nifty’s kitty

Market Update at 1:00 PM:In the past one hour of trade, Indian markets have seen a smart recovery from the lower levels and were seen trading near the day’s high. Nifty is up by 0.10 per cent while Sensex has added 51 points.  

Reliance Industries and ICICI Bank were the top two contributors in Nifty as they jointly contributed 33 points towards Nifty’s kitty. On the other hand, TCS and HDFC Bank are putting pressure on the index.   

Interestingly, the broader markets are seen outperforming as BSE Smallcap has jumped over 1 per cent while BSE Midcap added 0.12 per cent.  

Meanwhile, among the sectoral indices, BSE Consumer Durables has emerged as the top gainer; within this, Crompton Greaves Consumer Electricals and Dixon Technologies are the top gainers.

On Wednesday, Nifty opened the session with a modest uptick at 15,755, which also turned out to be the intraday high. Thereafter, it traded with a negative bias for the most part of the session. At closing, it settled with a loss of 41 points below the 15,700 mark. Nifty has now registered its lowest closing since June 9. The broader markets exhibited a mixed performance with Nifty Smallcap 100 ending up by 0.66 per cent while Nifty Midcap 100 inching lower by 0.33 per cent.   

Among the sectoral indices, Nifty Pharma, Nifty Auto, Nifty FMCG, and Nifty PSU Bank gained between 0.13 per cent and 0.93 per cent. On the flip side, Nifty Financial Services, Nifty Private Bank, and Nifty Realty emerged as the top losers.   

The price action of the day formed a bearish candle on the daily chart as the closing was lower than the opening level. Nifty is gradually drifting downside. It lost 180.35 points or 1.13 per cent in the last four trading sessions.  

The 15,900-15,920 zones have become a very strong resistance for Nifty. Unless it clears this resistance, we cannot be so bullish on the market direction. Sustaining below the 20-DMA for the second consecutive day is a short-term weaker sign. During the latter part of June, Nifty traded in a little over the 200-point range between the zones of 15,900 and 15,670. However, on the eve of the weekly expiry, it closed at the critical support level. Going forward, a close below the 15,670-600 zone will be the first warning sign for the bulls.  

Overall, a decisive breach of 15,670-15,600 level can unleash a fresh leg of the downswing, where the test of 15,450 level is highly likely.