Market Wrap

Indian equity markets began the week on a positive note, recovering from the losses of the previous two sessions as broad-based buying returned across sectors. The Nifty gained 0.96% to finish just below the 24,000 mark after opening with a gap-up and witnessing sustained buying during the second half of the session. Although early weakness in Bank Nifty kept indices range-bound initially, improving market breadth and renewed investor confidence helped the benchmark end near the day's high.

The IT sector emerged as the biggest contributor to the rally, with the Nifty IT Index advancing nearly 2.5% for the second consecutive session. Optimism surrounding improving global technology demand and expectations of stronger earnings from leading IT companies supported buying interest. Market sentiment also received a boost from easing geopolitical tensions following reduced concerns over the US-Iran conflict, which pushed crude oil prices lower and improved risk appetite across global equity markets. Softer crude prices are a positive development for India as they help contain inflationary pressures and strengthen the broader macroeconomic outlook.

Investors also tracked developments related to the US-Japan trade agreement and broader global trade negotiations, with expectations that further progress could benefit export-oriented sectors. Overall, the session reflected a shift in investor focus from geopolitical uncertainties back to corporate earnings and domestic economic fundamentals.

What's Ahead

The market's attention will now turn to the ongoing first-quarter earnings season, with several large-cap companies set to announce their quarterly results. Investors will closely monitor management commentary on demand conditions, margin trends, and future growth guidance for indications of corporate earnings momentum.

On the global front, the upcoming US Federal Reserve policy meeting, key US macroeconomic data releases, and developments in international trade negotiations will remain important triggers for global markets and foreign institutional investor flows. If crude oil prices remain subdued and corporate earnings continue to exceed expectations, Indian equities could extend their recovery, although intermittent global volatility may continue to influence near-term market movements.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty staged a strong rebound, closing at 23,995.95, up 228.50 points (0.96%), as buying interest resurfaced following the recent correction. Technically, the index has reclaimed and closed above its 50-day Exponential Moving Average (EMA), indicating improving short-term momentum and a recovery in market sentiment. The Relative Strength Index (RSI) has strengthened to 49.55, suggesting that bullish momentum is gradually building, although it remains below the bullish threshold of 50. As long as Nifty sustains above the 23,800–23,850 support zone, the recovery could extend towards the 24,200–24,250 resistance area. A decisive breakout above this range may open the door for further upside, while failure to hold support could trigger renewed selling pressure. Overall, the near-term outlook remains Sideways to Bullish.

BankNifty

Bank Nifty continues to underperform the broader market after closing at 56,592, down 534.80 points (0.94%), reflecting persistent selling pressure despite a late recovery from intraday lows. The index failed to sustain early gains and witnessed aggressive profit booking after breaking below its consolidation range, highlighting cautious sentiment in banking stocks. Technically, the immediate support lies in the 56,700–56,850 zone, while resistance is placed at 57,350–57,500. A sustained move above the resistance zone could improve sentiment and revive buying momentum, whereas a break below support may accelerate the corrective trend. Until a decisive breakout occurs, Bank Nifty is expected to remain in a Sideways to Bullish trading range, with stock-specific action likely to dominate.

Sensex

The Sensex ended the session at 76,835.78, gaining 776.01 points (1.02%), as broad-based buying helped the index recover strongly from recent weakness. From a technical perspective, the index continues to hold above its 50-day EMA, indicating that medium-term support remains intact. However, it is still trading below its 100-day and 200-day EMAs, suggesting that the broader trend has yet to turn decisively bullish. The 76,200–76,500 zone remains a crucial support area, while 77,200–77,500 is the immediate resistance zone to watch. A sustained move above resistance could strengthen bullish momentum and attract fresh buying, whereas a pullback towards support is likely to witness buying interest. Overall, the technical outlook for the Sensex remains Sideways to Bullish in the near term.