Market Wrap

Indian equity markets staged a strong recovery on Tuesday, with the Nifty 50 rising 1.60% to close at 22,721.95 and the Sensex advancing 1.54% to 73,033.78. After a muted opening, buying momentum strengthened through the session, helping benchmark indices recover from recent selling pressure, although brief profit booking interrupted the rally before buyers regained control. The rebound reflected renewed investor interest at lower levels, even as elevated crude oil prices, geopolitical tensions and persistent foreign investor selling continued to pose risks.

The IT sector led the recovery, with the Nifty IT index surging 5.2%, marking its strongest single-day performance in more than 17 months. HCL Technologies reported a 21.2% year-on-year increase in quarterly net profit to ₹5,132 crore, alongside improved operating profitability. HCLTech shares jumped 8.4%, while TCS gained 6.8%, lifting sentiment across the technology sector and supporting the broader market rebound.

Currency movements also remained in focus, with the Indian rupee strengthening to ₹95.28 against the US dollar, supported by measures introduced by the RBI to ease pressure on the currency. Globally, a decline in US Treasury yields from recent highs offered some relief to financial markets, although uncertainty surrounding inflation, interest rates and technology valuations continued to temper risk appetite.

What's Ahead

Indian equities may begin Wednesday's session with a cautiously positive bias, but the Nifty's approach toward the 22,800–22,900 resistance zone could invite profit booking. Sustained buying above this range would strengthen recovery momentum, while the 22,600–22,700 zone will be important for assessing whether the rebound can hold.

The IT sector will remain in focus as investors evaluate whether HCLTech's stronger earnings, improving margins and AI-related business momentum can support further gains in TCS, Infosys and Wipro. Market participants will also monitor comments from Finance Minister Nirmala Sitharaman regarding the government's willingness to hear investor views on LTCG tax and STT during Budget consultations. However, no tax relief has been confirmed, and expectations surrounding potential changes remain speculative.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 surged 358.60 points, or 1.60%, to close at 22,721.95, staging a strong recovery supported by broad-based buying and a sharp rally in IT stocks. The index opened at 22,364.15, touched an intraday low of 22,288.45 and closed at its session high, indicating sustained buying interest throughout the day. Market breadth was firmly positive, with 46 stocks advancing against just 4 declining, while the RSI moved above 40, signalling improving momentum. Easing bond yields and softer crude oil prices also supported sentiment. For the next session, immediate support is placed at 22,418 and 22,230, while resistance lies at 23,026 and 23,214. A sustained move above 23,026 could extend the recovery, whereas a decline below 22,418 may weaken the near-term setup.

BankNifty

The NIFTY BANK advanced 563.05 points, or 1.03%, to close at 55,481.05, as buying interest across most banking constituents supported the index. After opening marginally lower, the index recovered steadily and finished near its intraday high of 55,551.75, reflecting improving buying momentum. Market breadth remained positive, with 12 constituents advancing against 2 declining, while the RSI moved towards 50, indicating a gradual improvement in bullish momentum. Immediate support is placed at 54,811 and 54,397, while resistance levels stand at 56,151 and 56,565. Holding above 54,811 could help sustain the recovery, while a decisive move above 56,151 would strengthen the bullish setup and open the possibility of further upside.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index gained 362.20 points, or 1.46%, to close at 25,228.55, supported by broad-based advances across lending, banking and financial services stocks. Shriram Finance led the gains, followed by Bajaj Finance and Cholamandalam Investment, while 17 constituents advanced against only 3 decliners, indicating strong participation in the recovery. The index's positive breadth suggests improving near-term sentiment across the financial services segment. Immediate support is positioned at 24,937 and 24,756, while resistance is placed at 25,520 and 25,701. Sustaining above 24,937 could keep the recovery intact, whereas a decisive breakout above 25,520 would indicate stronger upward momentum.

Sensex

The BSE SENSEX jumped 1,109.10 points, or 1.54%, to close at 73,033.78, supported by a strong rally in IT stocks and widespread buying across heavyweight constituents. HCL Technologies and TCS led the advance following encouraging earnings-related developments, while gains in Tech Mahindra, Infosys, Hindustan Unilever and financial stocks further strengthened the index. Market participation was robust, with 27 stocks advancing against just 3 declining, reflecting broad-based improvement in sentiment. Immediate support is placed at 72,165 and 71,628, while resistance levels stand at 73,902 and 74,440. Holding above 72,165 could help preserve the recovery, while a sustained move beyond 73,902 would strengthen the bullish outlook and potentially extend the rally toward the next resistance zone.