Nifty gives up morning gains by midday; Bank Nifty outperforms as IT, metals drag

Markets retreated from their morning highs by midday on Wednesday, with the Nifty 50 slipping 4 points or 0.02 per cent to 24,048.05 as of 12.57 PM, after opening at 24,085.85 against a previous close of 24,052.05. The Sensex followed suit, trading at 76,999.61, down 55.33 points or 0.07 per cent, having opened at 77,192.76 against a previous close of 77,054.94, erasing the morning’s gains of over 300 points.

The mid-session pullback came despite a promising start. Markets had surged early in the day, breaking above the 24,200 resistance level briefly before retreating. Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that “frontline indices continue to trade in tandem with their respective 100-day EMAs since the second week of June,” with the 24,050–24,070 zone now acting as crucial near-term support and the 24,300–24,320 zone as crucial near-term resistance. On the Sensex, Shah pegged support at 77,100 and resistance at 77,900.

Bank Nifty was the standout performer, outperforming the broader market and up 1.06 per cent in trade, led by PSU banking names. The index had reclaimed the 58,000 psychological level during the session. Ponmudi R, CEO of Enrich Money, noted that “sustaining above this level remains crucial to reinforce bullish momentum and support a further recovery towards the 58,400–58,600 resistance zone,” with 57,800 acting as immediate support.

Among Nifty 50 gainers, Eternal led with a rise of 2.57 per cent to ₹293.50, followed by UltraTech Cement, which jumped 2.38 per cent to ₹11,770.00. Shriram Finance held its morning gains, rising 1.92 per cent to ₹1,033.40. HDFC Life advanced 1.59 per cent to ₹564.05, while Eicher Motors gained 1.57 per cent to ₹7,393.50, reflecting buying interest across consumption, cement, financials, and auto sectors.

On the losing side, Power Grid Corporation was the top Nifty decliner, falling 2.45 per cent to ₹279.15. Hindalco dropped 1.67 per cent to ₹958.00, and Infosys slid 1.65 per cent to ₹1,074.90, continuing the IT sector’s weak run from the morning session. JSW Steel declined 1.43 per cent to ₹1,229.80, and Hindustan Unilever fell 1.28 per cent to ₹2,093.10, indicating pressure across utilities, metals, IT, and FMCG.

On the BSE, market breadth remained positive despite the index-level weakness. Of 4,229 stocks traded, 2,294 advanced against 1,734 declines, with 201 unchanged. Some 105 stocks hit 52-week highs, against 64 at 52-week lows. Stocks in the upper circuit stood at 175, compared to 134 in the lower circuit.

Currency and commodity markets added to the cautious mood. The Indian rupee remained under pressure, trading above ₹96.1 against the US dollar, weighed down by elevated crude prices, geopolitical uncertainty, and safe-haven dollar demand. MCX Crude Oil opened with a gap-up, reclaiming the ₹7,700 zone, while US crude traded near $80 per barrel amid continued Middle East tensions and concerns over supply disruptions in the Strait of Hormuz. COMEX Gold held near $4,040 with resistance at $4,100–$4,120, while MCX Gold stayed above ₹1,41,500 in cautious trade.

Shah warned that a slip below 24,050 on the Nifty could drag the index toward 23,900–23,920, while a move above 24,320 “can experience an extension of the rally towards 24,480.” With options data showing heavy call writing at 24,200 and 24,300 strikes capping the upside and put support anchored at 24,100 and 24,000, markets appear set to remain range-bound through the afternoon unless a fresh trigger emerges.