Nifty Rebounds as Broad-Based Buying Offsets FII Selling; Realty and PSU Banks Lead Gains
Indian equities rebounded on Thursday following Wednesday’s sharp decline, with the Nifty 50 closing higher as broad-based buying across large, mid and small-cap stocks offset weakness in the IT sector. Realty, PSU Banks and Financials led the advance, while India VIX declined sharply, reflecting easing near-term volatility expectations. Domestic institutional buying remained supportive despite modest FII selling in the cash market.
Market Snapshot
| Index | Close | Change |
|---|---|---|
| Nifty 50 | 23,962.80 | +80.75 (+0.34%) |
| Nifty July Futures | 24,007.60 | +95.40 (+0.40%) |
| India VIX | 13.36 | -8.99% |
Market Breadth
Market participation remained strong throughout the session.
- Advances: 2,521
- Declines: 779
- Unchanged: 114
- Advance/Decline Ratio: 3.24
Broader Market
- Nifty Midcap 100: +1.38%
- Nifty Smallcap 100: +1.80%
The strong advance-decline ratio indicates participation was broad-based rather than concentrated in a few large-cap stocks.
Sector Performance
Top Performing Sectors
- Realty: +3.54%
- PSU Bank: +1.62%
- Bank Nifty: +0.90%
- Pharma: +0.89%
Weakest Sectors
- IT: -0.30%
- Auto: -0.21%
Domestic-oriented sectors outperformed, while IT and Auto lagged the broader market.
Index Contributors
Top Contributors
| Stock | Contribution (Points) |
|---|---|
| Bharti Airtel | +29.24 |
| HDFC Bank | +24.23 |
| Sun Pharma | +11.92 |
Top Draggers
| Stock | Contribution (Points) |
|---|---|
| Infosys | -14.18 |
| Dr. Reddy’s Laboratories | -10.50 |
| Axis Bank | -7.47 |
Strength in telecom, banking and pharmaceutical stocks more than offset weakness in select IT and financial names.
Institutional Activity
Cash Market
| Participant | Net Flow |
|---|---|
| DII | +₹2,058 Cr |
| FII | -₹532 Cr |
Domestic Institutional Investors remained net buyers, while FIIs turned modest net sellers after four consecutive sessions of net buying.
FII Futures Activity
| Segment | Net Flow |
|---|---|
| Nifty Futures | +₹206 Cr |
| Bank Nifty Futures | +₹202 Cr |
| Stock Futures | +₹1,280 Cr |
FII activity in the futures market turned constructive, with net buying across Nifty, Bank Nifty and Stock Futures.
FII Derivatives Positioning
Index Futures
| Position | Change |
|---|---|
| Long Positions | +1,230 |
| Short Positions | -1,105 |
| Long-Short Ratio | 9.56 |
FIIs increased long exposure while reducing short positions, indicating a moderation in bearish positioning.
Stock Futures
| Position | Change |
|---|---|
| Long Positions | +11,099 |
| Short Positions | -2,917 |
Fresh long additions together with short covering reflected improved positioning in individual stocks.
Index Options
| Position | Change |
|---|---|
| Call Long | +10,236 |
| Call Short | -16,687 |
| Put Long | +23,498 |
| Put Short | +45,937 |
| PCR | 1.08 |
Options activity reflected stronger put writing than call writing during the session, while call short covering was also observed. Overall positioning suggested relatively stronger put-side activity in the derivatives market.
Technical Overview
From a technical perspective, the Nifty continues to trade above its 50-day Exponential Moving Average (EMA), with the 23,800–23,850 zone remaining an important near-term support area. The 50-day EMA (23,923) reinforces this support.
On the upside, the 24,150–24,200 zone remains the immediate resistance. The 100-day EMA (24,133) lies just below this zone, adding to its technical significance. Price continues to trade between these key moving averages, making these levels important from a technical perspective.
Key Technical Levels
| Level | Observation |
|---|---|
| 23,923 | 50-day EMA (Dynamic Support) |
| 23,800–23,850 | Major Near-term Support Zone |
| 24,133 | 100-day EMA (Dynamic Resistance) |
| 24,150–24,200 | Major Immediate Resistance Zone |
| 24,450–24,500 | Next Major Resistance Zone |
Market Highlights
- Nifty rebounded 0.34% following Wednesday’s decline but encountered resistance near the 100-day EMA, forming an inverted hammer candlestick on the daily chart.
- India VIX declined nearly 9%, reflecting lower implied volatility.
- Market breadth remained exceptionally strong, with an Advance/Decline Ratio of 3.24.
- Midcap and Smallcap indices outperformed the benchmark, indicating broad-based participation.
- FII’s recorded net buying across Nifty, Bank Nifty and Stock Futures.
Editorial Note
This publication is based on publicly available market data, including price action, market breadth, institutional flows, derivatives positioning and technical observations. It is intended solely for educational and informational purposes and should not be construed as investment advice, research recommendations, or a solicitation to buy or sell any financial instrument.
Market observations based on publicly available data. For educational purposes only; not investment advice.
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