Nifty Holds Firm Despite Softer Growth and Ongoing Profit Booking Pressure

Index Update: The Nifty 50 Index closed near 24,570.20, remaining above its 50-day SMA of 23,954.95, indicating that the medium-term technical structure continues to strengthen. Recent price action reflects mild profit booking after the recent rally, with the index continuing to trade comfortably above its moving average despite the pullback. The 14-day RSI stood at 60.38, suggesting momentum remains positive while staying below overbought territory. Immediate support is placed near 24,450.00 and 24,320.00, while resistance is seen around 24,700.00 and 24,830.00. A sustained move beyond these levels could influence the index's next directional trend.

Macro Update: India's private sector growth moderated in July, with the Composite PMI holding at 54.3, its lowest since March 2022, as slower services activity outweighed improved manufacturing output. Services PMI was revised to 53.3, while easing input cost inflation and stronger hiring provided support despite softer demand and weaker business confidence.

Top Market Movers: On Wednesday, Shriram Finance Limited (NSE:SHRIRAMFIN) led the gainers with a 3.23% increase, closing at INR 1,122.40 followed by Grasim Industries Limited (NSE:GRASIM) up 2.74% at INR 3,224.00 and JSW Steel Limited (NSE:JSWSTEEL) which rose 2.31% to INR 1,330.00. On the downside followed Tata Consultancy Services Limited (NSE:TCS) saw the largest drop, falling 1.91% to INR 2,413.00 followed Apollo Hospitals Enterprise Limited (NSE:APOLLOHOSP) down 1.55% to INR 8,910.00 and HCL Technologies Limited (NSE:HCLTECH) which dropped 1.45% to INR 1,350.00.

Commodity Update: Commodity Update: The U.S. dollar remained near a six-week low as improving optimism over potential progress in U.S.-Iran discussions supported overall market sentiment, while the Japanese yen stabilized following recent intervention measures and renewed U.S. backing. Gold advanced 0.97% to USD 4,192.72, silver gained 1.43% to USD 61.10, and copper rose 0.13% to USD 14,039.00. Brent crude oil declined 0.30% to USD 79.12 as expectations of an interim U.S.-Iran agreement to restore shipping through the Strait of Hormuz continued to weigh on crude prices.

Our Stance: The Nifty 50 continues to trade above its key moving average, indicating that the broader trend remains constructive despite recent profit booking. Positive technical momentum, easing input cost pressures, and resilient corporate fundamentals support the medium-term outlook. However, softer economic activity and resistance near higher levels may keep near-term market sentiment cautious.

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