Market View: Nifty Slips Below 26,000, Midcaps Under-Perform – Weekly Expiry Setup For Tomorrow

📊 INDEX PERFORMANCE SNAPSHOT

Range for the day (High–Low):

• Nifty 50: 26,142.00 – 25,912.15
• Bank Nifty: 59,307.00 – 58,802.75
• Fin Nifty: 27,740.20 – 27,419.60
• MidCap Select: 13,888.90 – 13,723.65

🧩 QUICK TAKE

• 🔻 All key indices closed in the red, with MidCaps seeing the sharpest cut.
• ⚠️ Nifty and Bank Nifty both closed near the day’s low – a sign of caution ahead of tomorrow’s weekly expiry.
• 💸 Profit-booking was visible after the recent sharp up-move, especially in broader markets.

📌 WHAT TODAY’S MOVE IS TELLING US

🔹 1. Profit-booking near record zones
Nifty failed to hold above 26,100–26,150 and slipped back below 26,000. This shows traders are lightening positions at higher levels instead of aggressively chasing a breakout one day before expiry.

🔹 2. Bank Nifty – soft but not broken
Bank Nifty gave up intraday gains from 59,300+ and closed almost at the day’s low around 58,800. The fall is mild in percentage terms, which indicates cooling-off rather than panic selling. Private and PSU banks both looked more range-bound than trend-driven.

🔹 3. Financials and MidCaps under pressure
Fin Nifty mirrored Bank Nifty with a negative close and strong intraday selling from the highs. MidCap Select fell the most, highlighting heavier profit-booking in high-beta and recently outperforming names. This usually happens when traders de-risk before expiry or a big event.

🔹 4. Sentiment – cautious, not bearish
Despite the red close, the overall pattern still looks like a normal pullback inside a larger uptrend. Volatility is likely to pick up further tomorrow as option writers and intraday traders adjust positions around key strikes.

🎯 KEY LEVELS FOR TOMORROW’S WEEKLY EXPIRY

(Use these more as zones than exact tick levels.)

🔥 NIFTY 50

• Immediate Support: 25,900 – 25,850 (today’s low zone and intraday demand area)
• Next Support: 25,780 – 25,720
• Immediate Resistance: 26,050 – 26,100 (previous close + intraday supply)
• Major Resistance: 26,150 – 26,200 (today’s high and psychological zone)

🔍 View:

• As long as Nifty holds above 25,850 on a closing basis, the structure remains “buy on dips” for positional traders.
• A decisive move above 26,150 can trigger short covering towards 26,250–26,300.
• A break below 25,850 could invite quick selling up to 25,700–25,650 during expiry volatility.

🏦 BANK NIFTY

• Support Zone: 58,700 – 58,500
• Deeper Support: 58,200 – 58,000
• Resistance Zone: 59,000 – 59,300
• Strong Resistance: 59,600+

View:

• Sideways-to-negative bias as long as it trades below 59,300.
• Sustained trade above 59,300 can open the door to 59,800–60,000 on short covering.
• Weakness below 58,500 may drag it towards 58,000, which is a key make-or-break level for bulls.

💼 FIN NIFTY

• Support: 27,420 – 27,350
• Resistance: 27,650 – 27,750

View:

• Likely to move in sync with Nifty + Bank Nifty.
• Intraday traders can look for quick mean-reversion trades between these levels.

📉 MIDCAP SELECT

• Support: 13,700 – 13,650
• Resistance: 13,850 – 13,900

View:

• After today’s underperformance, midcaps may see more stock-specific moves rather than a strong index-wide trend.
• Fresh aggressive buying is better avoided unless the index regains 13,850+ on closing basis.

🔮 EXPIRY DAY SENTIMENT – WHAT TO EXPECT TOMORROW

• 🎢 Volatility: First hour and last hour can be very choppy as option positions are adjusted or squared off.
• ⚖️ Range-bounded bias: Unless there is a big global gap-up/gap-down, Nifty is likely to oscillate between 25,850 and 26,150 for most part of the day.
• 🧨 Option Writers: 26,000 in Nifty and 59,000 in Bank Nifty may act as key psychological levels where both call and put writers are active.
• ✅ Trading approach:
  • Buy-on-dip trades closer to support with strict stop-loss.
  • Avoid over-leveraging in weekly options – time decay will be very high.
  • Focus on quick intraday moves; carry-forward trades only if levels are clearly broken on either side.

🧭 TRADER CHECKLIST FOR TOMORROW

• ✔ Watch Nifty 25,850 and 26,150 as the main boundaries.
• ✔ For Bank Nifty, 58,500 support and 59,300 resistance are crucial.
• ✔ Keep an eye on midcaps – deeper cuts there can start to weigh on sentiment.
• ✔ Stick to defined stop-loss and position sizing; expiry moves can be very fast.