Market Wrap

Indian equity markets ended another range-bound session on Tuesday as the monthly expiry failed to provide any meaningful direction. After opening slightly lower, the Nifty attempted to recover in early trade and briefly moved towards the previous session's highs. However, the momentum faded during the second half as selling pressure resurfaced, dragging the index towards the day's low. The Nifty eventually settled at 23,985, down 0.04%, reflecting continued caution among market participants ahead of key global events.

Sectoral performance remained mixed, with Nifty IT standing out as the strongest performer. The index advanced more than 3% for the third consecutive session, supported by selective buying following the recent correction and growing optimism ahead of major global technology earnings. The broader market, however, remained largely stock-specific as investors continued to assess quarterly earnings from domestic companies.

Global cues were mixed throughout the session. US markets ended overnight on a mixed note, Asian equities traded lower amid cautious risk sentiment, while European markets remained resilient and traded in positive territory. Investors also remained on the sidelines ahead of the US Federal Reserve's monetary policy decision, while developments surrounding the Bank of Japan's policy outlook, ongoing US trade negotiations, and the progress of the global earnings season continued to influence overall market sentiment.

What's Ahead

Investor focus will now shift to the outcome of the US Federal Reserve's policy meeting, which is expected to provide fresh guidance on the future path of interest rates and global liquidity. Alongside the Fed, developments in international trade negotiations, foreign institutional investor (FII) flows, and the Bank of Japan's policy stance will remain important factors for global markets.

Domestically, the ongoing Q1 FY26 earnings season is expected to keep markets stock-specific, with management commentary on demand trends, margins, and business outlook likely to drive sectoral movements. From a technical perspective, the Nifty needs to hold above key support levels to maintain stability, while strong earnings from index heavyweights could help improve sentiment and potentially trigger a breakout from the recent consolidation phase.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 continues to trade in a consolidation phase around the crucial 24,000 mark, reflecting indecision among market participants as aggressive option writing keeps the index confined within a narrow range. Technically, the index remains below its 20-day EMA, indicating that short-term momentum is still subdued despite holding above immediate support. The RSI at 49.26 signals neutral momentum, while the Put-Call Ratio (PCR) of 0.93 suggests a balanced derivatives setup with neither bulls nor bears holding a clear advantage. Meanwhile, India VIX has eased to 12.56, pointing towards lower expected volatility. Immediate support is placed at 23,800–23,850, while 24,200–24,250 remains the key resistance zone. A decisive breakout above resistance could revive bullish momentum, whereas failure to do so is likely to keep the index range-bound with a Sideways to Bullish bias.

BankNifty

Bank Nifty ended on a weaker note after facing sustained selling pressure throughout the session, although the index managed to hold above its 100-day EMA, keeping the broader medium-term structure intact. The formation of a bearish candle on the daily chart indicates near-term weakness, but the absence of a breakdown below key support suggests that the ongoing consolidation remains healthy. Immediate support is seen in the 56,700–56,850 zone, while 57,350–57,500 continues to act as a crucial resistance area. A sustained move above this resistance could trigger fresh buying interest and strengthen the bullish outlook, whereas a breach below support may invite additional selling pressure. Until a decisive breakout occurs, Bank Nifty is expected to remain in a broad consolidation phase with a Sideways to Bullish bias, making a buy-on-dips approach favourable.

Sensex

Sensex continues to witness a consolidation phase after forming a Doji-like candlestick near its 20-day EMA, highlighting indecision between buyers and sellers following the recent pullback. Although the index remains below its 200-day EMA, indicating that the broader trend is still cautious, the ongoing recovery attempt remains intact as long as key support levels are protected. The RSI is hovering around 49, reflecting neutral momentum and suggesting that the market lacks a strong directional trigger. Immediate support is placed at 76,200–76,300, while 77,200–77,300 remains the key resistance zone. Sustaining above support could keep the recovery on track, while a decisive breakout above resistance may open the door for a move towards 77,700–78,000. Overall, the index is expected to remain range-bound with a Sideways to Bullish bias until a clear breakout emerges.