Where is the market headed?
Today was a tough day in the markets with no place to hide. As we had discussed earlier in the week, the additional tariff news has broken the market’s back. Many were hoping for a U-turn from the US President, but that never happened. Instead, the situation got worse, and the government’s comment that there will be “damage, but not severe damage” spooked investors even more.
Market Overview
Charts are now showing a head-and-shoulders pattern, which, if it plays out, could drag Nifty closer to 23,000. For now, everyone is watching if the 24,400–24,500 range can provide some support.
Nifty Next 50
Nifty Jr dropped 1.29%.
Nifty Mid and Small Cap
Midcaps dropped 1.21%, and Smallcaps dropped 1.1%. Charts show weak distribution patterns, and panic selling could happen if neckline supports break.
Bank Nifty
Bank Nifty is leading the fall with its head-and-shoulders pattern already activated, pointing towards 52,000–52,500 levels. Still, since the index is oversold, a bounce could come if some relief measures or announcements are made.
GOLD
As always, gold is moving up while markets are falling. Prices touched ₹10,145 per gram as investors rushed to safety.
Advance Decline Ratio
The advance-decline ratio was poor with just 101 advances against 400 declines, showing how strong the grip of bears was throughout the day.
Heat Maps
The market heatmap was almost all red with big names like HCL Tech, Infosys, TCS, HDFC Bank, and ICICI Bank leading the losses. Even FMCG majors like Hindustan Unilever and ITC fell.
Movers Of The Day
Ola gained another 8% after a strong run in the past week, moving from ₹40 to ₹55 in just a few sessions. This is notable as it is showing strength in a weak market, which often signals potential setups. But on the other side, promoter selling in Indigo hit investor confidence hard, with the stock seeing 5000 crore worth of trades today.
Sectoral Overview
Sector-wise, nothing was green. Capital markets fell 2.6% with BSE, MCX, AngelOne, UTI, and Nippon sliding. Tourism stocks also weakened on the back of Indigo’s fall and weakness in IRCTC and Indian Hotels. Real Estate, defense, IT, and financials were all down 1–2%. Clearly, there was no safe space in today’s market.
Sector of the Day
Nifty Capital Market Index
Nifty India Tourism Index
Tweet Of the Day
To close on a thought, markets are always vulnerable to big players with leverage. Like in the case of MicroStrategy’s massive Bitcoin holdings, when such positions get exposed, they can trigger waterfall crashes. The lesson is simple – leverage must stay private because once it is visible, the market often finds a way to bring it down.
