Market Outlook

Nifty saw sharp fluctuations, dipping to around 22,200 levels earlier this week before staging a remarkable recovery in the final three hours of today’s session. Surprisingly, Nifty even managed to hit a new all-time high, leaving bearish investors scratching their heads in disbelief.

Nifty Heatmap

Taking a closer look at the Nifty heat map, we observed a mixed bag of performances across sectors. Autos like Bajaj Auto and Mahindra showed strength, while Maruti and Tata Motors faced some downward pressure. In the banking space, private banks like Kotak and Axis Bank led the charge, supported by gains in life insurance companies such as SBI Life and HDFC Life.

Sectoral Overview

Banking stocks played a pivotal role throughout the session, with Bank Nifty up by 0.8% and private banking stocks climbing by 0.9%. However, the initial steep fall in the market limited the overall gains, although the recovery post-noon was quite impressive. Real estate and public sector enterprise stocks faced selling pressure.

Mid & Small Cap Performance

Mid-caps and small caps displayed mixed performances. While mid-caps found support `at a previously mentioned level around 17600 – 17800, small caps continued to exhibit weakness, suggesting potential downsides in the near term.

Nifty Bank Overview

Nifty Bank index emerged as a standout performer, closing in on its previous all-time high. As long as the banking sector continues to outperform, market sentiments are likely to remain positive.

Highlight – REALTY

After breaking above the resistance just below 900 levels, REALTY index seems to be taking a pause converting the resistance into a support to watch out for.

Highlight – PVT BANKS

Nifty private banking index shows promising signs, with indications of an inverse head and shoulders pattern that could signal further upside potential.

Highlight – TATA CHEMICALS

Tata Chemicals has been on a spectacular trend in the recent past clocking 27% gains in just 5 sessions.

Highlight – IIFL Finance

IIFL has dropped almost 40% in just across two sessions. This is a kind of outcome that cannot be predicted by any means. This may be due to the fact that markets are at a slightly elevated position and sellers may be panicking whenever they come across a news like in case of this stock.

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