Overall, it’s been a good week. The final trading day, however, saw some selling pressure early on—likely due to the prospects of conflict on the border and general nervousness after eight or nine sessions without a down move. This seemed to be more of a flash-in-the-pan selling bout, some of which recovered during the day. The selling was primarily driven by nervousness over the possibility of war, so there’s really nothing major to worry about. The markets are still in good shape, and no major trend change has occurred as of today.

Where is the market headed?

Market Overview

On the charts, Nifty came down to 23,847, which coincidentally matches the top made in March. From a charting perspective, this was a strong support level, and the market bounced back above 24,000 to close the day. The 200 DMA is also close to this level, and while it was broken on the downside today—after having broken out on the upside just four days back—this could trigger a whiplash for 200 DMA breakout strategies. However, a 0.86% drop after such a strong run is nothing to worry about—it’s actually quite healthy.

Nifty Next 50

Nifty Junior, on the other hand, lost a significant 2.4% and also found support at a previous top.

Nifty Mid and Small Cap

Mid-caps and small-caps both dropped 2.5%, again taking support near previous tops. This indicates that while the very short-term uptrend has been dented, the higher top formation from the previous move gives us hope that a higher bottom could form next. Though we did see a false signal in a similar case earlier, there’s still reasonable optimism that India is not heading for significantly lower levels.

Bank Nifty

Bank Nifty was down nearly 1%, about 1,500 points off its top.

GOLD

Gold also took a hit, down 1.5%, now sitting around ₹95,000–₹85,000. Gold appears overextended, especially when compared to the 40 DMA, so a pullback to around ₹90,000 per 10 grams is quite plausible and healthy.

Advance Decline Ratio

Market breadth was very poor, with just 50 advances and 450 declines.

Heat Maps

Heatmaps were deep red—only SBI Life managed to stay green. Major banks like Axis Bank, Kotak Bank, and SBI were all down, as were NBFCs and autos including Tata Motors, Maruti, and Bajaj Auto. Bharti Airtel and Adani stocks also saw declines. The nifty next 50 space was hit harder, with notable losers like DLF, PFC, IRFC, Adani Power, Indigo, and Indian Hotels. Sectors tied to tourism and travel were especially impacted due to the Kashmir issue and widespread profit booking.

Sectoral Overview

Sectoral trends showed only one sector in the green. Tourism was the worst hit at -3.5%, followed by capital markets at -3.1%, media at -3.2%, and real estate down 2.8%. It was a bad day for the entire market, but if you take a weekly or monthly view, the picture improves. Over the past month, most sectors are still in the green, except metal and IT, which aren’t doing as well.

Sectors of the Day

Nifty IT Index

IT is trying to make a comeback, even though it’s still well below previous highs.

Stocks like Infosys (2.8%), Persistent (2.2%), and Coforge (1.9%) showed gains. Some stocks did lose ground due to the broad market weakness, but the damage wasn’t uniform.

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