Nifty Reclaims 26,000 as DIIs Absorb FII Selling; Refex Industries Cracks 20%

The Pulse The bulls are back in control. The Nifty 50 decisively reclaimed the psychological 26,000 mark today, driven by a risk-on sentiment in the broader market rather than just heavyweight lifting. While Foreign Institutional Investors (FIIs) continued their selling spree, Domestic Institutional Investors (DIIs) stepped in with aggressive buying, effectively putting a floor under the market. The real action, however, was in the Midcap 100 (+1.18%), which significantly outperformed the benchmarks, signaling a return of retail confidence.

Snapshot

Metric	Level	Change	Trend
Nifty 50	26,047	+0.57%	🟢
Bank Nifty	59,390	+0.30%	🟢
Midcap 100	60,283	+1.18%	🟢
Smallcap 100	17,390	+0.94%	🟢
India VIX	10.11	-2.81%	⚠️

Market Breadth

• Advances: 500 | Declines: 247 (Bulls controlled the narrative with a 2:1 advance-decline ratio, indicating healthy participation across tiers.)

Sector Watch Money is rotating back into high-beta industrial pockets while defensive sectors take a breather.

• 🚀 Leaders: Industrial Minerals (+3.32%) and Stockbroking (+2.76%) led the charge, with Heavy Electricals (+2.17%) seeing fresh accumulation.
• 🛑 Laggards: Depositories (-0.80%) and Garments (-0.75%) faced profit booking.

Institutional Flow The tug-of-war continues. FIIs were net sellers of ₹2,020.94Cr, continuing their year-end distribution. However, this was handily absorbed by DIIs, who bought ₹3,796.07Cr, injecting significant liquidity into the system.

Whale Watch

• Refex Industries (-19.99%): The stock was the day’s biggest casualty, locking in a lower circuit and hitting a fresh 52-week low of ₹254.90. The sharp cut comes amidst persistent concerns over high promoter pledging and negative cash flows from operations. Technically, the stock has breached all major moving averages, with volumes suggesting an institutional exit.

• Transformers & Rectifiers (India) Ltd (+16.04%): TARIL staged a massive reversal, bouncing from near 52-week lows. The move appears to be value-buying in the Heavy Electrical Equipment sector, which remains a structural theme for India’s power infrastructure. The stock cleared the ₹275 resistance on strong volume (62M shares), signaling renewed momentum.

• GMR Airports (+6.15%): The stock saw a volume breakout, closing at ₹104.20. Sentiment remains supported by the long-term clarity on aeronautical tariffs (approved earlier this year), with today’s move likely driven by sector rotation into infrastructure themes.

• Vodafone Idea (+3.64%): An anomaly in terms of volume—over 1.14 Billion shares changed hands today. While the price move was modest, the sheer churning suggests a major battle between bulls and bears at the ₹11 support zone.

The Setup (Technical Outlook) Technically, the Nifty closing above 26,000 is a bullish confirmation. The index has formed a higher low, and the immediate resistance now shifts to 26,200. On the downside, 25,900 acts as the immediate demand zone. However, traders should exercise caution: India VIX at 10.11 is historically low, often preceding sudden volatility spikes. Complacency is the enemy here.