Indian share market continued their lacklustre trade for the second consecutive session on Wednesday, consolidating in a narrow band ahead of the monthly expiry. The weakness in FMCG stocks, led by index heavyweight ITC, Nestle India, HUL, Tata Consumer, Emami, and Adani Wilmar further dented sentiments.

The BSE benchmark Sensex closed lower by 239 points, or 0.29%, at 81,312, and the NSE Nifty50 dropped 74 points, or 0.30%, to settle at 24,752.

The broader market continued to show resilience amid value buying by investors, with the Nifty Midcap100 ending marginally lower by 0.02%. On the other hand, the Nifty Smallcap100 ended with a 0.33% gain.

"The domestic indices remained rangebound with a negative bias, primarily due to the lack of support from FIIs and prevailing premium valuations. A lingering concern over India-US trade relations following the end of the 90-day pause period continues to pose an external risk,” said Vinod Nair, head of research, Geojit Investments.

On the domestic front, key economic indicators such as an improved monsoon forecast, a benign inflation outlook, and expectations of a stronger Q4 GDP may help cushion downside risks. However, earnings visibility needs to improve in tandem with the macros, which is vital for stability in the direction, he added.

Top gainers and losers

On the BSE Sensex pack, ITC, IndusInd Bank, Nestle India, UltraTech Cement, and Mahindra and Mahindra were among top five losers, falling in the range of 1.4% to 3.2%. On the other hand, Bajaj Finance, Bharti Airtel, ICICI Bank, Adani Ports, and HCL Tech were among the notable gainers, ending higher in the range of 0.5-1.5%.

ITC topped the losers’ chart, falling over 4% in intraday trade after its largest shareholder British American Tobacco Plc (BAT) announced to sell around 2.3% stake in the hotel-to-cigarette conglomerate via block deal.

On the sectoral front, fast-moving consumer goods (FMCG), auto, metal, pharma, consumer durables, and healthcare indices were among the top laggards. On the flip side, media, PSU banks, financial services, and energy stocks saw some buying activities.

Technical outlook

The Nifty spent another day in consolidation, with the index remaining largely range-bound ahead of the monthly expiry. On the hourly chart, the index has slipped below the critical 21-EMA and 50-EMA, indicating a weakening trend in the near term, said Rupak De, senior technical analyst at LKP Securities.

For the Nifty, the immediate support is seen at 24,700; a sustained move below this level could trigger further selling pressure. Significant put writing at 24,700 reinforces the technical setup. On the higher end, notable call writing is observed at 24,800. “A decisive move above 24,800 could force call writers to cover their positions at the 24,800 CE, potentially triggering a sharp rally in the market," he said.

In the derivatives segment, 93 stocks ended in the green while 128 declined. Significant open interest buildup was observed in stocks like LIC Housing Finance, Hindustan Copper, Aurobindo Pharma, ONGC, and IRCTC, said Sundar Kewat, technical and derivatives analyst, Ashika Institutional Equity.

On the Nifty options front, the highest open interest on the call side was at the 25,000 strike, while on the put side, it was concentrated at 24,800 and 24,000. The Put-Call Ratio (PCR) stood at 0.70, he added.

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