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Nifty holds 24,000 as banks lead a late recovery

Benchmarks opened weak on global cues, then clawed back losses in the last hour on heavy buying in HDFC Bank and ICICI Bank. Breadth stayed negative; midcaps lagged for a third session.

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Today's market brief

Published after the 3:30 pm close, every trading day. What moved, why it moved, and what to watch tomorrow.

Banks rescue the session; broader market still tired

The Nifty 50 opened 0.6% lower tracking a soft Wall Street close and a firmer dollar, slipping below 23,900 in the first hour. The turnaround came after 2 pm, when private banks saw a burst of institutional volume — HDFC Bank finished 2.1% higher and ICICI Bank added 1.6%, together contributing almost the entire recovery in the index.

Outside financials the picture was weaker. IT stocks fell for a second day on worries about US client budgets, with Infosys and TCS down over 1%. The Nifty Midcap 100 closed 0.7% lower and the advance–decline ratio on the NSE stood near 1:2, so the headline index is masking a market that is still under distribution.

FIIs were net sellers of about ₹1,850 crore in the cash segment while DIIs bought roughly ₹2,300 crore, continuing the pattern of domestic funds absorbing foreign supply. India VIX eased 3% to 13.2.

Tomorrow: US CPI prints tonight; a hot number would test today's recovery early. Watch 23,850 on the Nifty as the level bulls need to defend, and RBI's weekly data for any change in liquidity stance.

Sector heatmap

NSE sectoral indices, one-day change. Darker cells moved more than 1%.

Technical analysis

Price action, key levels and momentum on the benchmark, plus stock-specific setups we're tracking this week.

Nifty 50 — daily candles, 30 sessions

  • Buy setup
    Bank NiftyBullish engulfing on the daily chart above the 20-DMA. RSI turned up from 45. Stop below 50,400; target 52,000.
  • Watch
    Nifty 50Trading inside a 23,850–24,300 range for two weeks. Wait for a close outside the band; breakouts from tight ranges tend to run.
  • Sell on rise
    Nifty ITLower highs since the last earnings season; MACD below zero line. Rallies toward 41,500 are likely to be sold.
  • Buy setup
    Larsen & ToubroCup-and-handle on weekly, breakout above 3,700 on volume 1.8× average. First target 3,950.
  • Watch
    Reliance IndustriesSitting on 200-DMA at 2,840. A hold here keeps the medium-term uptrend intact; a close below opens 2,720.

Fundamental analysis

Valuation and quality snapshot of large-caps we cover. Ratios are trailing twelve months unless marked.

CompanyCMP (₹)Mkt cap (₹ cr)P/EP/BROEDebt/EqDiv yieldView

Banks: credit growth is the story

Loan growth near 15% with stable asset quality keeps private banks attractive at 2–3× book. Deposit costs remain the swing factor for margins.

IT: earnings floor, no catalyst

Valuations have compressed to 22–25× forward, but deal wins are slowing. Fairly priced rather than cheap; prefer dividend-heavy names.

Capex plays: expensive but growing

Order books at L&T and defence PSUs are at multi-year highs. Growth justifies premiums only if execution holds; watch working-capital cycles.

Previous briefs

One brief per trading day. Closing move of the Nifty 50 shown alongside.