Market Wrap

Indian equities staged a modest recovery on Thursday, with the Nifty 50 snapping a seven-session losing streak and rising 0.64% to close at 24,231.85. The index opened higher but surrendered most of its early gains, ending close to the opening level, suggesting that buying interest remains cautious.

The rebound was supported by easing U.S. Treasury yields after the U.S. Treasury announced plans to more than double its buyback operations for longer-duration debt, helping ease pressure across global bond markets and improving risk appetite. Rate-sensitive sectors responded positively, with Realty gaining around 1.4%, while financials, IT and other sectors also witnessed buying. Asian markets remained firm, although European equities saw some profit-taking, leaving the broader global backdrop mixed.

The key takeaway is that Thursday's recovery needs follow-through. After seven consecutive sessions of decline, the rebound could reflect either fresh buying or short-covering. Sustaining levels above 24,200 and building on Thursday's gains would provide stronger evidence that buyers are gradually regaining control.

What's Ahead

Friday's market direction will be influenced by India's flash Manufacturing, Services and Composite PMI data, which will provide an early indication of business activity and economic momentum. U.S. flash PMI readings and movements in global bond yields will also remain important for risk sentiment.

Crude oil prices remain a key domestic risk, particularly given their implications for India's inflation outlook, the rupee and corporate margins. In the near term, the setup has turned cautiously positive following Thursday's rebound, but traders will look for the Nifty to sustain above 24,200 and move above Thursday's high to confirm a stronger recovery.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 rebounded 0.64% to 24,231.85, ending a seven-session losing streak and signalling a tentative improvement in momentum. The index traded in a narrow range after opening higher and remained above the 24,200 mark, while the RSI moved back towards the 50 level, indicating that selling pressure is easing and momentum is shifting towards neutral. Strong market breadth, with 40 stocks advancing against 10 declining, further supports the recovery. The immediate support zone is placed at 24,055–23,946, while resistance is seen at 24,409–24,518. A sustained move above 24,409 could strengthen the recovery, whereas a break below 23,946 would revive downside pressure.

BankNifty

The NIFTY BANK gained 0.45% to close at 57,495.90, extending its recovery as private-sector banks led the advance. The index opened higher, held firm through the session and closed near the upper half of its trading range, while the RSI moved closer to 50, pointing to a shift from bearish towards neutral momentum. However, the relatively modest gain and mixed participation across constituents suggest that confirmation is still needed. Immediate support is placed at 57,202–57,020, while resistance is seen at 57,790–57,972. A sustained breakout above 57,790 would improve the short-term setup, while failure to hold 57,020 could bring selling pressure back into the index.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index rose 0.73% to 26,203.90, supported by broad-based buying across financial stocks and strong market breadth, with 16 of 20 constituents advancing. The index is showing signs of stabilisation after recent weakness, with gains led by Muthoot Finance, SBI Cards, LIC Housing Finance and Shriram Finance. Immediate support is placed at 25,956–25,803, while resistance is seen at 26,451–26,604. Holding above the 26,000 zone would keep the near-term recovery intact, while a decisive move above 26,451 could signal stronger upside momentum.

Sensex

The BSE SENSEX advanced 0.82% to 77,537.72, outperforming the NIFTY 50 as broad-based buying emerged across financials, IT, consumer, infrastructure and auto stocks. The strong breadth, with 25 stocks advancing against just four declining, indicates improved participation and supports the recovery attempt. The index is now approaching an important resistance zone at 78,085–78,424, while immediate support is placed at 76,990–76,651. Sustaining above 77,000 would keep the short-term structure constructive, while a breakout above 78,085 could strengthen the recovery and signal a shift in near-term momentum.