Market Wrap

Indian equities maintained their winning streak for the fourth straight session on Thursday, with the Nifty closing 0.13% higher amid intraday volatility. The market showcased resilience ahead of the Q2 earnings season, supported by renewed buying in railway-linked and infrastructure stocks following fresh government policy announcements. Broader sentiment remained constructive as investors rotated into cyclical and capital goods names, even as the index approached a key resistance near the 25,200 mark, where some profit booking was observed.

Global cues were mixed U.S. markets traded steady ahead of crucial inflation data, while Asian and European indices stayed range-bound on cautious investor positioning. A slight decline in crude oil prices offered near-term comfort to Indian oil marketing companies. Domestically, the services PMI continued to signal strong demand conditions, reinforcing India’s relative macroeconomic strength. Importantly, foreign investors turned marginal net buyers after four sessions of selling, suggesting a return of selective institutional interest in large-cap counters.

What's Ahead

As the Nifty hovers near its crucial resistance zone of 25,200–25,280, the market may witness heightened volatility, with traders likely to book profits at higher levels. Immediate support lies at 24,900–25,000, which could serve as a strong base if consolidation occurs. The focus now shifts to the start of the Q2 earnings season, led by TCS results on October 9. Strong corporate earnings could reignite bullish sentiment and drive fresh sectoral leadership, while weaker numbers may trigger a short-term pause in the ongoing uptrend. Overall, near-term momentum remains positive but cautious, with earnings and global data likely to dictate the next move.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 index extended its modest uptrend, closing 0.12% higher at 25,108.3 after a volatile session marked by mixed sectoral performance. Despite weakness in banking and IT counters, the index managed to stay afloat, supported by strength in select heavyweights like Bharti Airtel and Bajaj Auto. Intraday, Nifty faced resistance near 25,220 and found buying interest around 25,080 levels, indicating consolidation within a narrow range. RSI is trending near 60, suggesting improving bullish momentum, though the index remains vulnerable to short-term profit booking near resistance levels. On the downside, immediate support lies at 24,905 and 24,779, while resistance is seen at 25,311 and 25,437. A decisive breakout above 25,400 could open the door for a fresh rally toward the 25,600–25,700 zone.

Bank Nifty

The Bank Nifty index gained 0.24% to close at 56,239.35, recovering from intraday weakness as mid-tier lenders like Federal Bank and IndusInd Bank outperformed. Heavyweights such as HDFC Bank and ICICI Bank lent support, offsetting the drag from Axis Bank and SBI. The index traded within a narrow 214-point band, reflecting indecision among market participants ahead of major earnings. RSI above 60 signals underlying strength, but muted breadth and the likelihood of near-term profit-taking warrant caution. Immediate support is placed at 55,702 and 55,370, while resistance is seen at 56,776 and 57,109. Sustained trade above 56,800 could accelerate upside momentum, whereas a slip below 55,700 may invite short-term consolidation.

Sensex

The Sensex added 136.63 points to close at 81,926.75, up 0.17%, as buying in financials and telecom names cushioned losses from autos and select banks. The index oscillated within a tight range, signaling a pause before the next directional move. Market breadth remained slightly negative, with 14 gainers and 16 losers, led by weakness in Axis Bank and Tata Motors. From a technical standpoint, the Sensex continues to show resilience above the 81,200 mark. Support is seen at 81,229 and 80,797, while resistance stands at 82,625 and 83,056. A breakout above 82,650 could pave the way for a move toward 83,400, while sustained weakness below 81,200 may trigger mild corrective action.

FINNIFTY

The Nifty Financial Services index gained 0.24% to end at 26,777.3, underpinned by strength in HDFC Bank, ICICI Bank, and Jio Financial. However, the broader tone remained mixed, as losses in Axis Bank, HDFC Life, and LIC Housing Finance limited the upside. The index appears to be consolidating, with buyers selectively accumulating quality names. RSI remains steady near 60, suggesting moderate bullish momentum. Near-term support is positioned at 26,610 and 26,440, while resistance lies at 26,945 and 27,120. A sustained close above 27,000 could reinvigorate buying interest, whereas a break below 26,600 may signal short-term fatigue.