Market Wrap

Indian equity markets closed on a positive note after the Nifty opened with a strong gap-up but gradually surrendered a large part of its intraday gains as follow-through buying remained limited. Even so, the benchmark index ended 0.39% higher, highlighting continued buying interest at lower levels.

Market sentiment improved further as India VIX declined nearly 4% to 11.79, indicating lower expectations of near-term volatility. From a technical perspective, the Nifty continues to trade comfortably above its 20-day and 50-day moving averages, while the 200-day moving average near 24,359 remains an important long-term support level.

Among sectors, the Nifty IT Index extended its recovery for a second consecutive session and formed a bullish Hammer candlestick on the weekly chart, suggesting the potential for further upside if upcoming earnings meet expectations. Global cues were broadly supportive, with the MSCI Asia Pacific Index advancing around 2%, although European markets traded largely subdued. Softer crude oil prices also boosted investor sentiment by easing inflation concerns and improving overall risk appetite.

What's Ahead

Investor focus will now shift firmly to the Q1 earnings season, with TCS, Anand Rathi Wealth and G M Breweries scheduled to announce results on 9 July, followed by L&T Finance on 10 July and DMart and LTIMindtree on 11 July. The earnings announcements are expected to shape sentiment across the IT, financial services and consumption sectors.

Global developments will also remain on investors' radar, particularly the release of the latest FOMC meeting minutes, which could provide fresh signals on the U.S. interest rate outlook. Meanwhile, lower crude oil prices continue to offer a supportive backdrop for equities, although unexpected macroeconomic data or cautious corporate commentary could trigger short-term volatility.

Technically, immediate support for the Nifty is seen in the 24,190–24,050 zone, while resistance is placed around 24,375, followed by 24,520 and 24,600.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

NIFTY 50

The NIFTY 50 extended its upward momentum, gaining 95.15 points (0.39%) to close at 24,270.85, supported by broad-based buying in IT, pharmaceutical, and select financial stocks. Although the index witnessed some profit booking after opening with a strong gap-up, it managed to hold above key short-term support levels, reflecting sustained buying interest at lower levels. Technically, the index remains comfortably above its key moving averages, while the Relative Strength Index (RSI) has moved above the 60 mark, indicating strengthening bullish momentum. Immediate support is placed at 24,131, followed by 24,044, while resistance is seen at 24,411 and 24,497. A decisive move above the resistance zone could pave the way for further upside, while holding above support levels would keep the prevailing positive trend intact.

BANK NIFTY

The NIFTY BANK Index ended marginally lower, declining 93.15 points (0.16%) to 57,938.50 after failing to sustain its early gains, as weakness in select private and PSU banking stocks outweighed gains in a few large lenders. Despite the modest decline, the index continues to exhibit underlying strength, with the RSI hovering around the 60 level, suggesting that bullish momentum remains intact. Technically, the index is consolidating within a defined range, with immediate support placed at 57,554 and 57,315, while resistance is positioned at 58,323 and 58,562. A sustained move above the resistance zone could revive upward momentum, whereas a break below support may trigger short-term corrective pressure.

FINNIFTY

The NIFTY FINANCIAL SERVICES Index ended nearly unchanged, rising 12.65 points (0.05%) to close at 26,875.05, as gains in diversified financials and select private banks offset weakness in power financiers and asset management stocks. The balanced market breadth reflects a phase of consolidation following the recent rally, with investors selectively accumulating quality financial names. Technically, the index continues to maintain a constructive bias as long as it holds above immediate support levels at 26,671 and 26,545. On the upside, resistance is placed at 27,079 and 27,205, and a breakout above this range could strengthen bullish momentum in the financial sector.

SENSEX

The BSE SENSEX gained 261.79 points (0.34%) to close at 77,763.91, driven by strong buying in IT, financial services, telecom, and pharmaceutical stocks, which more than offset weakness in select banking and automobile counters. The index continues to trade with a positive undertone, supported by improving market breadth and sustained participation from heavyweight stocks. Technically, the broader trend remains favourable as the index holds above important support levels at 77,274 and 76,971. Immediate resistance is seen at 78,254, followed by 78,557, and a decisive breakout above these levels could extend the ongoing rally, while any pullback towards support is likely to attract fresh buying interest.