Market Wrap

Indian equities advanced sharply on Wednesday, driven by across-the-board buying and firm global cues. The Sensex gained nearly 600 points while the Nifty closed comfortably above the 25,300 mark, signaling renewed investor confidence. Gains were led by Bajaj Finserv, Bajaj Finance, L&T, Nestle India, and Asian Paints, while mild profit-taking was seen in Infosys, Tata Motors, Axis Bank, Tech Mahindra, and Kotak Mahindra Bank.

All sectoral indices ended in positive territory - Nifty Realty surged over 3%, followed by Power, Consumer Durables, Metals, and Telecom, each up around 1%. The Midcap and Smallcap indices rose 1% and 0.7%, respectively, reflecting broad-based participation. The rupee strengthened by 72 paise to ₹88.07 per dollar amid the RBI’s currency stabilization efforts.

Corporate action added to the buoyancy - HDFC AMC’s robust Q2 results (+24.6% YoY profit) and a 1:1 bonus issue lifted sentiment, while Godrej Properties’ land acquisition in Bengaluru underscored continued strength in real estate. Defence-linked names like HAL, BEML, and MTAR Technologies extended gains on sustained policy support for domestic manufacturing. Globally, US markets closed higher ahead of key inflation data, with the NASDAQ leading the rally. However, India’s widening trade deficit of $32.15 billion in September, driven by rising gold and electronics imports, remains a watchpoint for the rupee and macro stability.

What's Ahead

Investor attention now turns to Q2 corporate earnings and key macroeconomic data, including India’s CPI print and the US Fed’s Beige Book report. With improving domestic liquidity, a stronger rupee, and festive demand tailwinds, equities are likely to stay resilient in the near term. However, stretched valuations and global yield volatility could spark intermittent profit-booking. Sector rotation towards defensives, infrastructure, and policy-linked manufacturing plays is expected to continue as markets balance optimism with macro caution.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 index extended its uptrend, surging 178 points or 0.71% to close at 25,323.55, supported by strong buying across sectors. Market breadth was decisively positive, with 38 of 50 stocks ending higher. Gains were driven by Bajaj Finance, Nestlé India, and Larsen & Toubro, each rallying over 2%, while financial heavyweights like ICICI Bank and HDFC Life also added strength. However, mild profit-taking in technology and auto counters particularly Infosys, Reliance, and Tata Motors tempered the rally. The index formed a strong bullish candle on the daily chart, holding comfortably above the 25,300 zone. RSI near 60 indicates improving but controlled bullish momentum. Near-term support levels are placed at 25,140 and 25,027, while resistance is seen at 25,507 and 25,621. A sustained move above 25,600 could trigger a fresh leg of rally towards 25,800 in the coming sessions.

Bank Nifty

The Bank Nifty climbed 303 points or 0.54% to close at 56,799.90, aided by a solid rebound in PSU banks and steady gains in private lenders. With 9 of 12 constituents advancing, the index was propelled by ICICI Bank, HDFC Bank, and strong performances from SBI, Bank of Baroda, and Canara Bank. The move reflects a return of investor confidence in the broader banking space, especially state-owned names. The RSI above 60 signals healthy bullish momentum but suggests the index is nearing overbought territory. Support lies at 56,164 and 55,770, while resistance is pegged at 57,436 and 57,830. A breakout above 57,800 could open the path towards the 58,300 zone.

Sensex

The Sensex surged 575 points or 0.7% to close at 82,605.43, buoyed by broad-based strength in cyclical and consumer sectors. Out of 30 stocks, 22 advanced, led by Bajaj Finserv, Asian Paints, ICICI Bank, and L&T. The rally reflected robust domestic demand themes, even as IT and auto names such as Infosys and Tata Motors capped further upside. The formation of a higher-high pattern reinforces a positive bias. Key support levels are placed at 82,001 and 81,627, while resistance levels are at 83,210 and 83,584. A close above 83,600 could trigger a move toward record highs.

FINNIFTY

The Nifty Financial Services index jumped 243.5 points or 0.91% to settle at 27,071.8, with 17 of 20 constituents closing in the green. Gains were powered by Bajaj Finance, Bajaj Finserv, and ICICI General Insurance, which spiked nearly 9%, signaling fresh buying in NBFC and insurance counters. Core banking heavyweights ICICI Bank and HDFC Bank also lent crucial support, offsetting mild weakness in Kotak Bank and Axis Bank. The index’s structure remains constructive, with RSI confirming sustained bullish momentum. Immediate support is seen at 26,781 and 26,601, while resistance levels are placed at 27,363 and 27,542. A decisive move above 27,550 could propel the index toward the 28,000 zone.