Market Outlook

The day proved to be rather lackluster in market activity. It opened with a slight gap up from yesterday’s close, showing marginal upward movement before closing well within the previous day’s range. This cautious behavior suggested a lack of full confidence in further upward momentum, resulting in a day of consolidation. Despite significant gains in the past three sessions, today marked a pause in the market’s upward trajectory. Overall, it was a neutral day with a slightly positive bias.

Nifty Heatmap

IT stocks were down, TCS, Infosys tech, Mahindra all down. You had reliance come off after the results over the weekend. You had banking names moving up. So ICICI bank, Kotak Bank, Axis bank all moved up. And there was very good moves in metals and commodity space. Tata Steel, steel authority, JSW steel all doing quite well. Autos were flat

In the Nifty Next 50 index, several winners emerged, including Hal, Jindal Steel, and Vedanta. Public sector enterprise stocks showed strength, buoyed by positive results from companies like coaching and shipyard. However, ICICI Prudential Life saw a decline of 3%.

Sectoral Overview

Today, IT stocks collectively lost 0.8%, while certain sectors like metals, public sector enterprises, commodities, and realty witnessed notable gains

Mid & Small Cap Performance

Mid caps showed resilience, bouncing back stronger than Nifty and nearing new highs, indicating underlying strength. Small caps also surged, reaching new highs in the last four sessions.

Nifty Bank Overview

The Nifty Bank index remained positive, hovering close to an all-time high

Nifty Next 50

Nifty next 50 has closed almost at the new highs. It has recovered entirely from the fall it had towards the beginning of April. And each time that it has fallen, it has gone, made a new high. Nifty next 50 has been the remarkable index.

Nifty Metal Index

Despite market fluctuations, the metal index continued to soar, reaching a new all-time high. This resilience during market downturns underscores the strength of these stocks relative to the broader market.

Nifty IT Index

Nifty it index after this bounce is the first one to have retraced back. So it is now back to that breakdown point
that we were talking about earlier, and it has pretty much given a bearish engulfing candle today. So it is kind of leading the market down.

Disclaimers and disclosures : https://tinyurl.com/2763eyaz