Market Wrap

Indian equities advanced sharply on Wednesday, with the Nifty 50 rising 0.70% to close just below the 25,900 mark, driven by strong buying in large-cap names and renewed optimism around India–US trade talks. The session began on a firm note, supported by upbeat exit poll results, easing crude oil prices, and steady FII inflows, which together bolstered investor confidence. IT stocks extended their winning streak amid expectations of a breakthrough in bilateral trade discussions that could strengthen the country’s technology and outsourcing exports. Meanwhile, domestic cues were buoyed by improving macro indicators and policy stability signals ahead of the Budget session.

Globally, sentiment was mixed - Wall Street traded cautiously as investors balanced cooling inflation data against hawkish Fed commentary, while Asian and European markets moved in narrow ranges amid thin volumes. The announcement of potential tweaks in capital gains taxation by the Indian government added a policy-watch tone to the day’s trade, though it did little to dent overall optimism.

What's Ahead

Markets are likely to stay range-bound with a positive bias as investors await final US inflation figures and any progress updates on the India–US trade deal. A decisive close above 26,000 could pave the way for the next leg of the rally, while 25,600 remains a key near-term support. Sector rotation may continue, with IT, banking, and capital goods likely to lead the momentum. Traders should keep an eye on rupee movement and crude oil volatility, as sharp swings in either could influence short-term market direction.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its winning streak, surging 180.85 points (+0.70%) to close at 25,875.8, marking a strong close near its intraday high. The rally was broad-based, led by ASIAN PAINTS (+6.58%), Adani Enterprises (+5.00%), and IT majors like Tech Mahindra (+3.48%) and TCS (+2.56%), reflecting renewed optimism around India–US trade negotiations and easing global uncertainties. Despite some drag from HDFC Bank (-0.15%) and ICICI Bank (+0.01%), market breadth was firmly positive with 34 advances against 15 declines. On the technical front, the index comfortably held above its support zones and the RSI climbed past 60, suggesting improving bullish momentum. The next key support levels are at 25,695 and 25,581, while resistance is expected around 26,066 and 26,181. A sustained close above 26,000 could set the stage for a new upward leg in the ongoing rally.

Bank Nifty

The Bank Nifty index posted a modest gain of 0.23%, closing at 58,274.65, slightly underperforming the broader market. Gains were led by IndusInd Bank (+4.29%), Canara Bank (+1.51%), and Federal Bank (+1.13%), supported by positive traction in SBI and ICICI Bank. However, the upside was capped by mild losses in HDFC Bank (-0.15%), Axis Bank (-0.49%), and AU Bank (-1.03%). Technically, the index traded within a narrow range and appears to be undergoing sector rotation after recent outperformance. The RSI holding above 60 indicates sustained momentum, although near-term consolidation cannot be ruled out. Key support levels lie at 57,956 and 57,759, while resistance is seen at 58,593 and 58,790.

Sensex

The Sensex rallied 595.19 points (+0.71%) to close at 84,466.51, led by strength in large-cap names like Asian Paints (+4.46%), Tech Mahindra (+3.34%), and TCS (+2.73%). Broader buying across IT and select financials, including Bajaj Finserv (+2.42%) and Reliance (+1.19%), contributed to the upbeat sentiment. While Tata Steel (-1.30%) and TMPV (-1.28%) faced some pressure, the index maintained its bullish structure with 23 of 30 constituents advancing. The near-term outlook remains positive, supported by strong breadth and improving global cues. Support levels are placed at 83,958 and 83,603, while resistance is likely near 85,108 and 85,463. A close above 85,100 could signal continuation of the uptrend.

FINNIFTY

The Nifty Financial Services index (FINNIFTY) added 58.05 points (+0.21%) to end at 27,337.35, with a majority of constituents contributing to the gains. The upmove was powered by BSE (+4.77%), Bajaj Finserv (+2.49%), HDFC Life (+2.49%), and Jio Financial (+1.64%), partially offset by declines in Muthoot Finance (-1.91%) and Cholamandalam Finance (-1.48%). Technically, the index has maintained a constructive setup above its short-term averages, supported by consistent buying in select large-cap names. Immediate support lies at 27,136 and 27,005, while resistance is pegged at 27,561 and 27,692. A breakout above 27,700 could strengthen the short-term bullish bias.