Ajit Mishra – SVP, Research, Religare Broking
Markets opened on a positive note but failed to sustain early gains, ending marginally lower as trade-related concerns overshadowed favorable domestic cues. The Nifty slipped about 0.2%, settling at 25,145.50, after briefly retesting the 25,300 mark. Most sectors came under pressure, with metal, pharma, and realty emerging as the top losers, while select names from financials and private banks provided some support. The broader indices also faced selling pressure, with mid- and small-cap indices losing nearly a percent each.
The decline was largely driven by renewed worries over U.S.–China trade tensions and weak global cues, which offset optimism from strong IPO listings and improving IT earnings. While LG Electronics India’s stellar market debut captured investor attention, its strength couldn’t lift overall sentiment.
Technically, the Nifty is approaching its first key support at the 20-DEMA, near 25,050, with resilience in banking majors keeping hopes of a recovery alive. However, a decisive break below this support could trigger a deeper correction toward 24,800. Amid the volatility, we continue to maintain a tactical “buy on dips” approach, focusing on stocks showing relative strength or limited decline for long trade opportunities.