Market Wrap

Indian equity markets extended their consolidation phase on Thursday, with benchmark indices ending nearly flat despite supportive global cues. The Nifty 50 opened at 24,641 and witnessed sharp intraday fluctuations in both directions before settling almost unchanged at 24,636, reflecting continued indecision among investors. Buying interest emerged during the morning session, but gains were repeatedly capped by profit booking, indicating the absence of strong buying conviction.

Market sentiment remained cautious as participants refrained from taking aggressive positions ahead of key domestic and global developments. While European markets gained on the back of encouraging corporate earnings, weakness in U.S. technology stocks following disappointing semiconductor earnings limited optimism. Investors also kept a close watch on geopolitical developments in the Middle East, fluctuations in crude oil prices, and expectations surrounding upcoming U.S. labour market data and the Federal Reserve's interest rate trajectory, all of which continue to shape global risk sentiment.

What's Ahead

The market is expected to remain stock-specific in the near term until a fresh catalyst emerges. Investors will closely monitor the ongoing corporate earnings season, foreign institutional investor (FII) activity, crude oil price movements, and key U.S. macroeconomic releases, particularly the non-farm payrolls report, for further direction. A stronger-than-expected earnings season combined with stable global cues could help the Nifty break out of its current consolidation range. However, weaker global economic data, renewed geopolitical tensions, or a sharp rise in oil prices could keep volatility elevated and limit upside momentum.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 continues to exhibit a sideways-to-bullish technical structure despite ending the session almost unchanged at 24,636. The formation of a small-bodied candle on the daily chart reflects ongoing consolidation following the recent rally, while the index continues to trade comfortably above its key moving averages, keeping the broader uptrend intact. Momentum indicators remain supportive, with the RSI strengthening to 62.20, suggesting underlying buying strength even as follow-through momentum remains limited. India VIX edged up to 12.15, indicating a slight increase in volatility, while a healthy Put-Call Ratio (PCR) of 1.18 reflects a cautiously optimistic derivatives setup. Immediate support is placed at 24,400–24,450, whereas 24,750–24,800 remains the key resistance zone. As long as the index sustains above support, the buy-on-dips strategy remains favourable. A decisive breakout above 24,800 could trigger fresh upside momentum, while a break below 24,400 may lead to short-term profit booking.

BankNifty

Bank Nifty maintained its positive momentum, ending at 58,063.65 after forming a strong bullish candle on the daily chart, reflecting sustained buying interest throughout the session. The index continues to display a sideways-to-bullish bias, with buyers consistently emerging on intraday declines and keeping the broader trend constructive. Technically, Bank Nifty remains well positioned as long as it holds above the 57,500–57,700 support zone, while 58,250–58,500 continues to be the immediate resistance area. The overall market structure suggests that banking stocks are providing underlying strength to the broader market, and a sustained move above the resistance band could extend the ongoing rally toward higher levels. Until then, traders may continue to adopt a buy-on-dips approach, with the broader trend favouring gradual upside.

Sensex

The BSE Sensex strengthened further, closing at the day's high of 78,954.76, signalling improving market sentiment and continued buying interest on declines. Technically, the index remains in a sideways-to-bullish trend and continues to trade above its 20-day, 50-day, 100-day and 200-day exponential moving averages, reinforcing the strength of both the short-term and medium-term trend. The RSI has improved to 63.64, indicating healthy positive momentum without entering overbought territory. Immediate support is placed at 78,300–78,600, while 79,100–79,300 remains the key resistance zone. A sustained move above this hurdle could accelerate the ongoing recovery and pave the way for fresh highs, whereas any pullback toward the support zone is likely to attract buying interest, keeping the broader outlook constructive.