Indian headline indices broke their five-session winning streak to close in the red, despite initial gains following the Reserve Bank of India’s (RBI) 50 bps CRR cut. Bank and IT stocks were the biggest drags on the indices. The S&P BSE Sensex settled at 81,709.12, down by 56.74 points or 0.07%, while the broader Nifty50 closed at 24,677.80, lower by 30.60 points or 0.12%.
Commenting on the day’s action, Om Mehra, Technical Analyst at SAMCO Securities, noted that the Nifty index is holding steady above the crucial 24,650 support level. In his view, the primary trend remains positive, as the Nifty trades near the upper band of the Donchian Channel, which is trending higher—indicating potential bullish momentum. Additionally, India’s VIX remains subdued, hovering below the 15 mark, suggesting a contraction in volatility and reduced fear in the market, he said.
“The outlook remains optimistic as long as 24,500 holds on a closing basis. A decisive move above 24,700 could pave the way for further upside, while failure to sustain could lead to consolidation,” Mehra said.
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