Market Wrap: Nifty Defends 26k as Shakti Pumps & Refex Lead Smallcap Charge

The Pulse The benchmark Nifty 50 remained range-bound Monday, ending marginally lower as traders weighed persistent FII selling against resilient domestic inflows. While the headline index consolidated near the psychological 26,000 mark, the real action shifted to the broader markets, where specific themes in Water Infrastructure and Industrial Gases triggered massive short-covering rallies.

Snapshot

Metric	Level	Change	Trend
Nifty 50	26,027	-0.08%	🔴
Bank Nifty	59,462	+0.12%	🟢
Midcap 100	60,213	-0.12%	🔴
Smallcap 100	17,426	+0.21%	🟢
India VIX	10.25	+1.40%	⚠️

Market Breadth

• Advances: 395 | Declines: 346 (Breadth remains positive, signalling stock-specific strength despite index lethargy.)

Sector Watch Money flow is rotating aggressively into infrastructure-linked themes, specifically Water Management.

• 🚀 Leaders: Water Supply & Management (+4.07%) led by Shakti Pumps; Construction Vehicles (+3.28%).
• 🛑 Laggards: Telecom Equipment (-1.75%) dragged by Vodafone Idea; Restaurants (-1.72%).

Institutional Flow

• FIIs were net sellers of ₹1,114.22Cr, continuing their risk-off stance.
• DIIs absorbed the supply, acting as net buyers of ₹3,868.94Cr.

Whale Watch

• Refex Industries (+17.3%): Staged a massive recovery from 52-week lows after management issued a clarification regarding recent Income Tax searches, easing investor fears of adverse regulatory findings.
• Shakti Pumps (+16.7%): Surged on heavy volumes following reports of a significant ₹444 Cr order win under the PM-KUSUM scheme in Maharashtra, cementing its leadership in the solar pump segment.
• Vodafone Idea (-2.58%): Corrected on high volume (1.17B shares) as uncertainty over the final quantum of AGR dues relief persists, despite hopes for a government moratorium.

The Setup (Technical Outlook) Technically, the Nifty is in a consolidation phase. The index is fiercely defending the 25,900–26,000 support zone, which is critical for the structural uptrend. Immediate resistance stands at 26,100, where call writers have built significant positions. A daily close below 25,900 could trigger a slide toward 25,700, while a breakout above 26,150 is needed to resume the rally.