Market Wrap

Indian equities ended higher on Tuesday as late-session buying lifted benchmarks from early losses. The Nifty 50 surged nearly 0.5% to close around the 25,700 mark after briefly dipping below the previous session’s low. IT stocks led the recovery, with the Nifty IT index rising over 1% as investors rotated into technology names following a pullback in U.S. bond yields. Strength in PSU and defence counters also added to the positive tone amid anticipation of fresh government orders and investment cues. On the macro front, India’s industrial output data showed resilience, driven by robust manufacturing and infrastructure activity, while easing crude prices helped improve inflation expectations. Globally, U.S. markets rallied overnight led by the NASDAQ, while Asian cues remained mixed and European equities traded firmly in the green further supporting risk appetite.

What's Ahead

Markets are likely to remain range-bound with a mildly positive bias as traders await key U.S. inflation data and any commentary on the Federal Reserve’s rate outlook. A sustained move above the 25,800 level could open the door for a further rally toward 26,000, while 25,500 remains a crucial support zone. Softer crude prices, robust domestic macros, and improving FII inflows could act as tailwinds, though profit-taking near higher levels cannot be ruled out. Sectorally, IT, defence, and PSU names may continue to see buying interest, while financials could stay range-bound until clarity emerges on global yield trends.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 rebounded after a three-day decline, closing 82 points higher at 25,574.35 (+0.32%), supported by strong gains in IT majors Infosys (+2.59%) and HCL Tech (+1.82%), alongside financials like Bajaj Finance (+1.88%). The market showed renewed optimism as broad-based buying was seen across energy, metals, and pharma, aided by easing global concerns over a U.S. shutdown. The index maintained strength throughout the session, comfortably holding above 25,500 levels. However, weakness in Trent (-7.42%), Max Healthcare, and Tata Consumer capped broader gains. Technically, the RSI near 50 indicates neutral momentum, suggesting consolidation before the next directional move. Immediate support lies at 25,385 and 25,270, while resistance is seen at 25,756 and 25,871. A sustained close above 25,750 could open room toward the 26,000 mark.

Bank Nifty

The Bank Nifty closed marginally higher by 60.75 points at 57,937.55 (+0.10%), showing a restrained recovery after recent volatility. Gains in HDFC Bank, ICICI Bank, and Federal Bank helped offset losses in Axis Bank and SBI, reflecting a mixed sectoral tone. The index traded in a narrow range but managed to stay above its immediate support levels. The RSI near 60 suggests moderate bullish momentum, though buying remains selective. Key support is placed at 57,603 and 57,395, while resistance is seen at 58,273 and 58,480. Sustaining above 58,100 may signal a near-term continuation of the uptrend.

Sensex

The Sensex gained 319.07 points (+0.38%) to close at 83,535.35, led by strength in IT heavyweights Infosys (+2.52%) and HCL Tech (+1.88%), which provided the bulk of the upward thrust. The broader market, however, remained mixed, with 18 gainers and 12 decliners, as Trent (-7.41%) and Power Grid (-1.36%) weighed on sentiment. The index’s recovery above the 83,500 mark reflects improving confidence but remains capped by sectoral rotation. Near-term support levels are placed at 82,936 and 82,554, while resistance is seen at 84,172 and 84,555. A breakout above 84,200 could drive fresh momentum toward new highs.

FINNIFTY

The Nifty Financial Services Index rose 66.30 points (+0.24%) to close at 27,305.05, extending its recovery trend. The upmove was led by Cholamandalam Investment (+2.99%), Muthoot Finance (+2.94%), and Bajaj Finance (+1.88%), while selling in Axis Bank (-0.60%) and SBI (-0.55%) limited gains. Market breadth favored the bulls, with 12 out of 20 stocks ending positive. The index continues to consolidate near recent highs, indicating stability in financials despite uneven performance among heavyweights. Near-term support is seen at 27,086 and 26,954, while resistance lies at 27,511 and 27,642. Sustained trading above 27,500 may invite fresh momentum in NBFC and insurance counters.