 "stock market trading")
Nifty’s chute won’t open — Will 22,000 break the fall?
The benchmark Nifty 50 has plunged over 4,100 points, a steep 16 per cent drop from its peak. The relentless selloff has analysts searching for a solid support zone. Market experts say holding above 22,000 is critical for near-term stability — any slip below could send losses careening. “The unrelenting selling pressure and failure to hold resistance levels raise concerns about the market’s near-term stability. The 22,000 mark is the bulls’ last stand,” said Dhupesh Dhameja, derivatives analyst at Samco Securities. Devarsh Vakil, head of prime research at HDFC Securities, added, “Immediate support for the Nifty lies in the 22,000-22,050 range. A break below this could send Nifty towards 21,777, while 22,500 remains a key resistance.”
A winning hand at the wrong table: New F&O stocks struggle
Getting added to the futures and options (F&O) segment is usually a win for stocks, lifting their chances of joining key indices and attracting passive inflows. But for six recent entrants, market conditions have soured the celebration. On Friday, shares of Titagarh Rail Systems, Tata Technologies, Indian Renewable Energy Development Agency, and IIFL Finance tumbled over 5 per cent each, despite their F&O inclusion. Amara Raja Energy & Mobility and Patanjali Foods also slipped, though by a smaller 2 per cent. “Being added to the F&O segment now means traders can short these stocks, which is driving the declines,” an analyst explained.
Heavyweights on a diet: Sebi’s rules shrink HDFC, ICICI grip
The Securities and Exchange Board of India’s proposed cap on non-benchmark indices could weaken the grip of blue-chip stocks like HDFC Bank. The regulator plans to limit the weight of top index constituents to 20 per cent, with a combined cap of 45 per cent for the top three stocks. Currently, HDFC Bank and ICICI Bank hold 29 per cent and 25 per cent, respectively, in the Nifty Bank index. If the new rules take effect, their weights could drop below 15 per cent, forcing passive funds to liquidate over ₹7,000 crore worth of shares in both stocks. This shift could benefit other index components like Kotak Mahindra Bank, Axis Bank, and State Bank of India. While the move aims to curb concentration risk and encourage diversification, it may also bring short-term volatility and higher impact costs.
