Market Wrap

The market opened on a subdued note despite Gift Nifty indicating a strong start following the US Fed’s latest policy decision. Nifty slipped toward the crucial 25,700 support zone, but strong buying interest at lower levels helped the index reverse intraday weakness. By the close, Nifty settled just below 25,900, gaining around 0.55%.

Midcaps remained the standout performers for the second consecutive session, signalling ongoing rotational buying and renewed risk appetite in broader markets. While frontline indices held key technical levels, the leadership shift toward broader market segments was clearly visible.

On the global front, Wall Street’s sharp rally after the Fed’s rate cut failed to lift sentiment across Asian and European markets, which mostly traded muted to negative. Meanwhile, crude oil softened after OPEC suggested flexibility on its supply cuts—an encouraging sign for inflation-sensitive sectors.

Early commentary from US policymakers indicated that future rate cuts in 2026 would remain data-dependent, keeping global risk sentiment cautiously optimistic but grounded.

What's Ahead

With Nifty successfully defending its support zones and broader markets displaying resilience, the near-term outlook appears constructive.

Key triggers to watch :

• India inflation data - a major cue for domestic rate expectations

• Global PMI prints - will shape the economic growth narrative

• Crude oil movement - further cooling could support equities

• Foreign fund flows - likely to improve if global yields continue easing

Overall, the market setup favours a steady-to-positive bias, but upcoming macro data will dictate momentum in the days ahead.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 staged a strong rebound from the 50-day EMA after a three-session decline, closing at 25,898.55 with a gain of 0.55%. The index was lifted by robust buying in ADANIENT, JIOFIN, and TATASTEEL, while heavyweights like KOTAKBANK and HDFCBANK further anchored the recovery. Despite early weakness that dragged the index to 25,693, a decisive intraday bounce pushed it toward the day’s high of 25,922.80, signalling renewed momentum supported by strong volumes. The RSI’s movement toward the 50 zone reflects improving strength, although upside hurdles remain at 26,049 and 26,141, which may attract profit-booking. Immediate support is placed at 25,751 and 25,658, and holding above these zones will be key for sustaining the current recovery trend.

Bank Nifty

Bank Nifty extended gains to close at 59,209.85, rising 0.42%, driven by solid traction in KOTAKBANK, HDFCBANK, and CANBK. After briefly dipping below the 20-day EMA in the previous session, the index reclaimed and closed above it, reinforcing a short-term positive structure. The intraday low of 58,799.90 was met with strong demand, allowing the index to test the upper zone near 59,423 before easing slightly. RSI hovering around 55 indicates steady momentum with room for further upside. Immediate support lies at 58,864 and 58,650, while resistance is capped at 59,556 and 59,769, and a breakout above this band could open the door for a fresh leg higher.

Nifty Financial Services

FinNifty closed at 27,561.90, up 0.58%, supported by strong moves in BSE, JIOFIN, KOTAKBANK, and SHRIRAMFIN. However, pockets of weakness in CHOLAFIN, ICICIPRULI, and SBILIFE tempered the overall momentum, keeping gains moderate. The index continues to hover comfortably above its short-term support zones, with 27,396 and 27,291 acting as immediate downside levels to watch. On the upside, resistance at 27,735 and 27,840 remains crucial; a sustained move above this range could trigger further acceleration driven by financial heavyweights.

Sensex

The Sensex extended its upward trajectory, closing 426.86 points higher at 84,818.13, aided by strong performances from ETERNAL, TATASTEEL, and KOTAKBANK. The index recovered smartly from intraday dips and maintained a positive breadth, showcasing improving sentiment across large caps. Although pressure from ASIANPAINT and BHARTIARTL capped some upside, the overall structure remains constructive as long as the index holds above near-term support at 84,350 and 84,057. Resistance levels at 85,298 and 85,592 will be key hurdles; a breakout above these zones may propel the index toward new all-time highs.