Nifty slips below open as IT rebounds, banking holds firm; 26,000 remains key hurdle

Market Overview - Equity benchmarks, including the Sensex and Nifty, reversed early gains to trade in the red despite positive global cues, influenced by selective profit booking [1] - The BSE Sensex opened at 83,969.82 but fell to 83,606.97, down ₹127.28 or 0.15% [2] - The NSE Nifty 50 opened at 25,873.35 and slipped to 25,783.45, shedding 35.90 points or 0.14% [2] Global Influences - The pullback occurred despite firm global cues, with the Nasdaq rising 1.07% overnight, partly due to a strategic partnership between Nvidia and Meta [3] - Asian equities rose, supported by Wall Street's technology gains, while crude oil surged to $64 amid reports of U.S. military mobilization towards potential operations in Iran [3] Sector Performance - Among the top gainers on the Nifty 50, ONGC led with a gain of 1.76% at ₹269.25, followed by Infosys at ₹1,391.70, up 1.31% [5] - The IT sector showed recovery with HCL Technologies gaining 1.20% to ₹1,484.80 and TCS adding 1.08% to ₹2,724.00, contrasting with the broader sectoral trend where the IT index had previously shed over 1.2% [5] - The metal index was the top sectoral performer on Wednesday, rallying over 1% [8] Institutional Activity - Foreign Institutional Investors (FIIs) bought equities worth ₹1,154 crore, marking their second consecutive session of net buying, while Domestic Institutional Investors (DIIs) purchased ₹440 crore [8] - FII positioning in the derivatives segment reflects a net bullish bias, indicating a mildly constructive market undertone [8] Valuation Insights - The Nifty is trading at around 20 times FY27 estimated earnings, while midcap and smallcap indexes are trading at 28 and 24 times respectively, indicating a stock picker's market [8] - Positive prospects are noted for sectors including financials, autos, capital goods, pharmaceuticals, and hotels [8] Technical Analysis - The market found support near 25,650 on the Nifty and 83,400 on the Sensex, with an uptrend likely to continue as long as these levels hold [9] - Immediate resistance for traders is pegged at 25,950–26,000 on the Nifty and 84,700–85,000 on the Sensex [9] Commodities and Currency - MCX Gold futures are consolidating near the ₹1,50,000–₹1,60,000 zone after correcting from record highs, while MCX Silver trades near ₹2,30,000–₹2,50,000 [10] - The USD/INR pair hovers around 90.50–90.90, with the dollar index climbing to a one-week high of 97.70 following Federal Reserve meeting minutes [10]