Market Wrap

Indian markets extended their upward trajectory, with the Nifty 50 surging 103.40 points (+0.40%) to close above the 26,000 milestone for the first time. The index displayed strong resilience, recovering from an early dip to 25,906 and inching up to an intraday high of 26,024. Market breadth improved significantly, led by robust gains in consumption, healthcare, and banking stocks. ETERNAL, Tata Consumer, Max Healthcare, Kotak Bank, and Maruti were among the top contributors, while ICICI Bank and HDFC Bank provided additional stability.

On the flip side, Tata Motors plunged nearly 5%, emerging as the session’s biggest drag amid sector-specific concerns. Jio Financial, Asian Paints, and Indigo saw mild weakness but did little to dent the broader trend. Technically, Nifty’s RSI climbing above 70 signals strong momentum but also hints at near-term overextension.

Globally, sentiment remained constructive as easing geopolitical tensions and expectations of a softer Federal Reserve stance lifted risk assets. U.S. equities traded firm, Treasury yields edged lower, and crude oil prices stabilized - reducing inflationary worries. Asian markets mirrored this positivity, while European indices remained steady. Back home, optimism around a potential US–India trade agreement, combined with strong Q2 earnings and macro resilience, supported inflows despite elevated valuations.

What's Ahead

The Nifty may witness mild consolidation as it trades in overbought territory, with the RSI stretched and the index approaching key resistance levels. A breakout above 26,195–26,309 could open the door to a fresh leg higher toward 26,500+, while dips toward 25,827 are likely to see buying demand from institutional participants.

Traders should closely monitor :

• Global macro cues, especially Fed commentary and Treasury movement

• Heavyweight banking and consumption stocks, which continue to drive the uptrend

• Updates around the US–India trade deal, which may influence volatility

Overall sentiment remains optimistic, supported by improving global risk appetite, strong domestic fundamentals, and expectations of policy continuity.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its winning streak for the sixth straight session, rising 103.40 points to close at 26,013.45 (+0.40%). Market breadth remained strong with 33 advancers, led by solid buying in ETERNAL, Tata Consumer, Max Healthcare, Kotak Bank, and Maruti. While ICICI Bank and HDFC Bank offered stability, Tata Motors plunged nearly 5%, emerging as the key drag alongside Jio Financial, Asian Paints, and Indigo. The index moved within a narrow yet constructive range, rebounding sharply from 25,906 to hit an intraday high of 26,024, signaling persistent institutional demand. The RSI now above 70 underscores strong upward momentum but also reflects near-term overbought conditions. Immediate support sits at 25,827 / 25,713, while resistance is placed at 26,195 / 26,309, where profit-taking may emerge.

Bank Nifty

Bank Nifty rallied 445.15 points (+0.76%) to close at 58,962.70, with all 12 constituents ending in the green—a rare sign of broad-based sector strength. Gains were led by AU Bank, Canara Bank, Federal Bank, and Kotak Bank, while heavyweights HDFC Bank and ICICI Bank added steady support. The index recovered strongly from an early dip at 58,605 to touch 59,001 intraday, signaling firm bullish sentiment. The RSI is approaching 70, indicating improving momentum but also hinting at short-term overheating. Key support levels lie at 58,528 / 58,258, while resistance is seen at 59,398 / 59,667. A breakout above 59,667 could open the door for a fresh up-move.

Sensex

The Sensex climbed 388 points (+0.46%) to close at 84,950.95, supported by gains in ETERNAL, Maruti, and Kotak Bank. Strength in Reliance and HDFC Bank further reinforced the index, even as Tata Motors (-4.83%) and Asian Paints (-0.67%) weighed marginally on sentiment. With 20 gainers out of 30 constituents, the breadth remained solid. Technically, the index holds a positive structure with near-term support at 84,372 / 84,017 and resistance at 85,521 / 85,877. Sustained trade above 85,500 could accelerate momentum.

FINNIFTY

FINNIFTY gained 0.56% to close at 27,646.20, propelled by strength in SBI Card, ICICI General, Kotak Bank, and Shriram Finance. While financial sentiment remained broadly constructive with 14 of 20 constituents advancing, mild pressure persisted in Chola Finance, Jio Financial, and HDFC Life. The index continues to trade in an upward channel, with support positioned at 27,464 / 27,349 and resistance at 27,838 / 27,953. A close above 27,953 may trigger the next leg of upside momentum.