Nifty Drops 58 Points on Expiry Day as FPIs Net Sell ₹1,500 Crore
Indian benchmark indices closed lower on expiry day with Nifty declining 58 points and Sensex falling 250 points amid volatile, non-directional trading. FPIs were net sellers of ₹1,500 crore while DIIs provided support with net purchases of ₹1,182 crore. India VIX dropped 1.50% to 11.20 levels, and the rupee weakened 6 paise to 90.23 against the dollar due to rising crude oil and metal prices.
*this image is generated using AI for illustrative purposes only.
Indian benchmark indices witnessed volatile trading on expiry day, with both Nifty and Sensex closing in negative territory. The market displayed non-directional movement throughout the session, leading analysts to suggest levels-based trading as the most suitable strategy for day traders navigating the current market conditions.
Market Performance Overview
The benchmark indices reflected the uncertainty prevalent in Tuesday's trading session:
| Index | Movement | Points |
|---|---|---|
| Nifty | Declined | 58 points |
| Sensex | Declined | 250 points |
Despite the overall decline, technical analysis reveals underlying strength in the market structure. The index continues to attract buying interest near lower levels, demonstrating its ability to reclaim and hold the 25,700 demand zone.
Technical Analysis Insights
From a technical perspective, the market is showing signs of resilience at key support levels. The formation of consecutive candlesticks with long lower shadows near support indicates active dip-buying activity. This pattern suggests that bullish participants have not entirely exited the market, maintaining some optimism despite the day's decline.
Analysts emphasize that the intraday market texture remains non-directional, making levels-based trading the ideal strategy for day traders looking to capitalize on short-term movements.
Institutional Activity and Market Indicators
Institutional flows painted a mixed picture on Tuesday:
| Investor Category | Action | Amount |
|---|---|---|
| Foreign Portfolio Investors (FPIs) | Net Sold | ₹1,500 crore |
| Domestic Institutional Investors (DIIs) | Net Bought | ₹1,182 crore |
India VIX, which measures market volatility and fear, declined 1.50% to settle at 11.20 levels. This reduction in the fear gauge suggests that despite the day's decline, overall market anxiety remained relatively contained.
Currency and F&O Updates
The Indian rupee faced pressure, declining 6 paise to close at 90.23 against the US dollar. The currency's weakness was attributed to a rebound in crude oil prices and elevated metal prices, coupled with the cautious market environment that dented investor sentiment.
In the derivatives segment, two securities entered the F&O ban period: SAIL and Sammaan Capital. Securities enter the ban period when they cross 95% of the market-wide position limit, restricting fresh positions in these stocks.
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