Ajit Mishra – SVP, Research, Religare Broking
Markets witnessed a volatile session on the weekly expiry day but eventually ended in the green, extending Monday’s rebound. After an initial uptick, the Nifty drifted lower during the early hours; however, strong buying across heavyweights in the latter half lifted the index to close near the day’s high at 25,694.95. Sectorally, a mixed trend kept traders engaged—IT, auto, and metal stocks outperformed, while financials, realty, and pharma ended subdued. In the broader market, the midcap index gained over half a percent, whereas the smallcap index closed marginally lower, reflecting selective participation.
The early weakness was primarily driven by cautious global cues and continued FII selling. However, renewed buying interest in index heavyweights helped markets recover, supported by optimism following Goldman Sachs’ recent upgrade of India’s rating outlook. Additionally, some short-covering on weekly expiry further strengthened the momentum in the latter part of the session.
Technically, the Nifty has reclaimed its short-term moving average, the 20-DEMA, around the 25,600 mark. Sustaining above this level could open the door for a move toward 25,800–26,000, while any weakness below it might trigger profit-taking. Continued resilience in banking majors along with strength in IT stocks provides comfort for a potential rebound. Traders are advised to maintain a stock-specific approach, emphasizing risk management and rotational opportunities across sectors amid the prevailing volatility.