Nifty Holds 25,700 Support Amid Expiry Week Volatility
Overview
Indian equities saw volatility on Tuesday, with the Nifty 50 recovering from intraday lows to close just above the 25,700 support level. Sectoral performance was mixed as investors await key earnings reports from major companies including Infosys and Union Bank of India. The market navigates weekly expiry signals amidst global uncertainty.
Stocks Mentioned
Market Faces Expiry Week Turbulence
The Indian equity market navigated a turbulent session on Tuesday, ultimately staging a late recovery to pare significant intraday losses. The benchmark Nifty 50 index closed at 25,732, holding onto the critical 25,700 support level despite facing persistent selling pressure for much of the day.
The index had opened higher, briefly testing resistance near its 50-day exponential moving average around 25,891. However, bears took control, driving the Nifty to an intraday low of 25,603 before a robust rebound in the final hour helped limit the damage. This late surge saw the index gain over 150 points from its lows.
Mixed Sectoral Performance
Sectoral performance offered a varied picture. The Public Sector Banks, Media, and Information Technology (IT) sectors displayed resilience, ending the session with gains. Conversely, Consumer Durables, Real Estate, and Pharmaceutical stocks succumbed to profit-taking pressures, weighing on broader market sentiment. The Nifty Midcap 100 index saw a minor dip, while the Smallcap 100 index bucked the trend, posting a gain of 0.6%.
Analyst Views and Outlook
Market watchers are closely monitoring the upcoming corporate earnings season. Nagaraj Shetti of HDFC Securities anticipates potential upside, suggesting the Nifty could challenge the 25,900–26,000 resistance zone with immediate support seen at 25,600.
Ajit Mishra of Religare Broking noted the market's volatility during the weekly expiry, attributing movements to a combination of earnings reactions and global uncertainties. Religare Broking advises a cautious, sell-on-rise approach until the Nifty decisively breaches 26,000. A break below the 100-day EMA near 25,600 could signal a deeper correction towards 25,400. Nandish Shah of HDFC Securities highlighted the need for the Nifty to reclaim its 50-day EMA near 25,900 for renewed momentum, with the recent swing low of 25,473 acting as near-term support.
Upcoming Events
Investor focus now shifts to a slew of earnings reports from prominent companies including Infosys, Groww, HDB Financial Services, HDFC Asset Management Company (AMC), ICICI Prudential AMC, Indian Overseas Bank, Waaree Renewables Technologies, Union Bank of India, and Anand Rathi Share And Stock Brokers. Additionally, Wednesday marks the allotment date for the ₹1,071 crore Initial Public Offering (IPO) of Bharat Coking Coal Ltd., a subsidiary of Coal India Ltd.
