Leading the charge among the top performers on the Nifty, showcasing individual strength despite the broader market’s dip, were Shriram Finance, Bajaj Finance, and Coal India. Conversely, HCL Tech, Hindalco, and Tata Steel bore the brunt of the selling pressure, concluding the session as major losers.
The Nifty Midcap 100 Index continued its profit booking phase for the fourth consecutive day, ending with minor losses of 0.13%. On the other hand, the Nifty Smallcap 100 Index bucked the trend by rising 0.59%.Amongst the sectoral indices, Nifty FMCG, Consumer Durables, and Auto were the major gainers, demonstrating resilience in what was otherwise a dull market for the benchmark. Conversely, Nifty Realty, Metal, and IT were the major losers, seeing significant profit booking.
IT stocks were under pressure on Wednesday, ahead of TCS’ Q1 earnings tomorrow. The Nifty IT index fell 1%.
Shares of GAIL (India) Ltd. ended at day’s low as Petroleum and Natural Gas Regulatory Board (PNGRB) member indicated that the tariff order could be finalized within the next one to two months. PNGRB is expected to approve a revised tariff in the range of ₹70 per mmBtu, up from the current rate of ₹58.59 per mmBtu.
Vedanta Group stocks ended in the red but off lows, after a short-seller, by the name of Viceroy Research has alleged material discrepancies in the group’s financials. Viceroy has written in its note that it is short on the debt stack of Vedanta Resources, the parent company of Vedanta Ltd.Meanwhile, both domestic and foreign investors were net buyers in the cash market on Wednesday.
Going ahead, Nifty 50’s options contracts will have their weekly expiry on Thursday. The expiry session will also mark the beginning of the first quarter earnings season for the Nifty 50 companies, with TCS kickstarting proceedings.
TCS is expected to report a 1.4% sequential decline in constant currency (CC) revenue growth. While its US dollar revenue is likely to rise 0.6% quarter-on-quarter to $7,513 million, rupee revenue may decline 0.4% to ₹64,206 crore.
The Indian markets remain in a wait and watch mode, tracking the conclusion of the India-US mini trade deal, which is likely to determine the near-term market direction, said Siddhartha Khemka of Motilal Oswal.
Nandish Shah of HDFC Securities said that an attempt by the Nifty to surpass the previous session’s high failed, with the index turning southward after making double top at 25,548. However, the Nifty did manage to protect its level above the previous session’s low, which indicates an ongoing consolidation within its primary uptrend.
“Support and resistance for the Nifty continue to be at 25,331 and 25,670 respectively. A decisive breakout from this range would give directional view in the index,” Shah added.
LKP Securities’ Rupak De said the Nifty witnessed range-bound movement after a strong upmove, facing stiff resistance around 25,500–25,550. On the hourly chart, the index has slipped below the 50-hour simple moving average, while the RSI has also moved below the 50 mark, indicating weakening momentum.
However, the index continues to hold above the breakout zone of 25,200–25,250, which may act as immediate support in the short term. As long as this level is sustained, the broader trend remains positive. A sustained move above 25,550 could trigger fresh upside.
