Market Wrap

Indian equity markets witnessed a strong rebound session on Thursday, with the Nifty 50 climbing nearly 1.18% to close just below the 23,700 mark. After opening with a gap-up, the market maintained a firm positive bias throughout the session, supported by broad-based buying across sectors. The rally marked the second consecutive recovery session after the index rebounded from this week’s low of 23,262, indicating improving short-term sentiment among investors.

Pharma stocks emerged as the key market leaders, with the sectoral index witnessing a decisive breakout on daily charts, signaling the possibility of further upside momentum ahead. Metal stocks also remained in sharp focus as the Metal Index surged nearly 3.9%, driven by optimism surrounding a potential meeting between Donald Trump and Xi Jinping. Investors are viewing the development as a positive trigger that could ease global trade tensions and improve the outlook for commodity-linked sectors.

Global sentiment remained supportive throughout the day after U.S. markets closed firmly higher overnight, with bullish momentum extending across Asian and European equities as well. However, despite the recent recovery, the Nifty still trades below important technical resistance levels, including its 20-day moving average near 23,906 and the 100-week moving average around 23,984. This suggests that while near-term momentum has improved, the broader trend remains cautious until these key levels are decisively reclaimed.

What's Ahead

Friday will be the final trading session of the week, and market participants will closely watch whether the current recovery momentum can sustain further. Immediate support for the Nifty is placed around 23,590–23,540, while resistance is seen in the 23,800–23,900 zone. A sustained move above these resistance levels could strengthen bullish sentiment and open the door for additional upside in the near term.

Investors will continue tracking developments related to U.S.-China trade discussions, global equity trends, crude oil prices, and bond yield movements for fresh direction. While supportive global cues and domestic buying interest could help extend the rally, failure to cross major resistance zones may once again trigger volatility and profit-booking after the sharp rebound witnessed over the last two sessions.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its recovery for a second consecutive session, closing 277 points higher at 23,689.60 amid strong buying interest in telecom, pharma, metal, and financial stocks, despite persistent weakness in IT counters. The index traded with a firm undertone throughout the session after opening positive, supported by short covering and value buying in heavyweight sectors. Technically, the RSI has moved closer to the 50 mark, indicating improving momentum and strengthening bullish sentiment in the near term. Sustained buying in frontline stocks such as ADANIENT, CIPLA, BHARTIARTL, and HDFCBANK helped the index maintain upward momentum, while pressure from IT majors like INFY and TECHM limited sharper gains. Going ahead, immediate support is placed at 23,402 followed by 23,224, while resistance is seen at 23,977 and 24,155. A decisive move above the 24,000 zone could further strengthen bullish momentum, whereas failure to sustain above support levels may trigger renewed volatility.

Bank Nifty

The NIFTY BANK index closed firmly higher at 54,128.95, gaining 672.80 points as strong buying emerged across both private and PSU banking stocks. After witnessing some volatility during the first half of the session, the index gained momentum in the latter half led by heavyweight contributors such as HDFCBANK, BANKBARODA, PNB, and INDUSINDBK. Technically, the RSI has moved above the 40 mark, indicating improving momentum and a gradual strengthening of buying interest after recent consolidation. Broad-based participation across banking counters, with 13 out of 14 constituents ending in positive territory, reflects sustained investor confidence in the sector. Near-term support is placed at 53,354 followed by 52,875, while resistance levels are seen at 54,904 and 55,383. A sustained move above the 54,900 zone may open the door for further upside, while profit-booking near higher levels could keep volatility elevated.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index advanced 1.42% to close at 25,472.50, supported by strong buying across banking, insurance, and diversified financial stocks. Positive momentum in heavyweights such as HDFCBANK, BAJFINANCE, ICICIGI, and JIOFIN helped the index maintain a strong upward trajectory throughout the session, despite selective weakness in counters like LICHSGFIN and CHOLAFIN. Market breadth remained favourable with strong participation from large-cap financial names, indicating improving sentiment within the broader financial space. Technically, the index continues to witness gradual momentum improvement after recent consolidation, with buying interest emerging near lower support zones. Immediate support levels are placed at 25,084 and 24,847, while resistance is seen at 25,849 and 26,086. A breakout above the 25,850 mark could strengthen bullish momentum further and support continuation of the ongoing recovery trend.

Sensex

The BSE SENSEX rallied 789.74 points to close at 75,398.72, driven by robust buying in telecom, banking, pharma, and consumption-oriented stocks, while weakness in IT counters capped some upside. Strong gains in BHARTIARTL, HDFCBANK, SUNPHARMA, and ADANIPORTS helped the index maintain a positive trajectory throughout the session, reflecting improved market sentiment and broad-based participation. Despite continued pressure from IT heavyweights such as INFY, TECHM, HCLTECH, and TCS, the overall market structure remained constructive as 23 out of 30 constituents ended in the green. Technically, the index is witnessing improving short-term momentum after recovering from recent lows, although resistance near higher levels continues to remain crucial for trend confirmation. Immediate support is placed at 74,396 followed by 73,775, while resistance levels are seen at 76,402 and 77,022. Sustaining above the 76,400 zone could trigger stronger upside momentum in the coming sessions.