Nifty Outlook: After three days of continuous weakness, the market showed a strong recovery on Thursday. Due to buying at lower levels, Nifty closed around 25,900. About 40 stocks included in the index remained in the green. The market opened strong in the morning, then slipped a bit, but strong buying from the support of 25,700 changed the entire atmosphere.
How was the day’s movement in Nifty?
The index had slipped below its 50 DEMA in the first half hour itself. But from there Nifty made a strong comeback of 229 points. The day’s low was 25,693 and closing was at 25,899 with a gain of 140 points. This shows that there is good buying present in the market at the support level.
Which stocks shined and which remained under pressure?
Adani Enterprises, Jio Financial Services and Tata Steel were among the top gainers and took the index higher. Shares like Asian Paints, SBI Life and Bharti Airtel remained under pressure.
All sectoral indices except Nifty Media and Oil & Gas closed in the green. The biggest rise was seen in Auto, Metal, Pharma and Consumer Durables.
Midcap and smallcap also bright
Broader market also showed strength. Nifty Midcap 100 rose one per cent, while Nifty Smallcap 100 gained 0.8 per cent. This is an indication that the market strength was not limited to large caps only.
Rupee fell 41 paise to close at record low of 90.37 per dollar. The main reasons for this were heavy dollar purchases by importers, especially importers of precious metals, and the rise in global metal prices.
Federal Reserve’s decision and global signals
The US Federal Reserve cut interest rates on Wednesday, but said there was little scope for further cuts. The Fed made it clear that it will wait for the employment and inflation trends. Officials’ opinions also appeared divided on interest rates for 2026 and beyond.
FII selling continues
Foreign investors also sold heavily on Wednesday and sold shares worth ₹1,651 crore. This was the 10th consecutive day when FII selling continued. In comparison, domestic investors (DIIs) bought ₹3,752 crore and supported the market.
What data will be monitored next?
America’s jobless claims data will come today. India’s CPI inflation data and UK’s GDP data will be released tomorrow. All this data can decide the next direction of the market.
An expert’s opinion on Nifty
Nagaraj Shetty of HDFC Securities said that the market is trying to reverse the short-term downtrend. If Nifty breaks above 25,950 to 26,000, it may move towards 26,250–26,300. The nearest support for Nifty is at 25,750.
According to Sudeep Shah of SBI Securities, zone 25,750–25,730 of 50-day EMA is still a very important support. If Nifty slips below 25,730, the fall may be deeper. On the other hand, if Nifty succeeds in sustaining above 26,000, the index may go up to 26,150.
Nandish Shah of HDFC Securities said that Nifty has been repeatedly testing 50 DEMA (about 25,735) for the last three sessions. This is an indication that the market is consolidating at this level. But if Nifty breaks strongly below 25,735, the fall could go to 25,663 and 25,450.
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