Market Wrap

Indian equities staged a strong rebound on Monday, extending gains from oversold levels as the Nifty closed firmly above the 24,600 mark, up 0.81%, while the Sensex also advanced sharply. Auto stocks spearheaded the rally, breaking past near-term swing highs and setting a positive tone for the broader market. Investor sentiment was further buoyed by Prime Minister Modi’s successful diplomatic outreach at the SCO Summit in China, which was read as a sign of easing geopolitical tensions. Sectoral participation was broad-based, with financials and consumption names adding strength. Global signals, however, were mixed: U.S. indices closed last week weak, the NASDAQ remained under pressure, Wall Street was shut for Labor Day, Asian markets showed some profit-booking, and European equities traded largely rangebound.

What's Ahead

Focus now shifts to the September 3–4 GST Council meeting, where expectations of slab rationalisation and reform announcements could drive sentiment, particularly for consumption-linked sectors. The weekly Nifty expiry will also add near-term volatility. On the technical front, the Nifty has carved out immediate support at 24,575–24,520 and faces resistance at 24,730–24,810. With momentum swinging back in favor of bulls, a sustained breakout above 24,800 could set the stage for further upside, provided global markets remain stable.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 closed sharply higher at 24,625.05, gaining 198.2 points (0.81%) after opening soft at 24,432.70 but rallying to an intraday high of 24,635.60. The index’s strong upmove was supported by robust GDP data and upbeat global sentiment, breaking through recent consolidation levels. The bullish breadth, with 42 advances against just 8 declines, confirms renewed buying momentum. Technical indicators are turning positive, with RSI rebounding from oversold territory, suggesting further upside potential. Immediate support lies at 24,435 and 24,317, while resistance is capped at 24,815 and 24,933. Sustaining above 24,600 could open the door for a retest of lifetime highs.

Bank Nifty

Bank Nifty surged 346.8 points (0.65%) to settle at 54,002.45, rebounding from recent lows and closing above the psychological 54,000 mark. The index formed a bullish candle following Friday’s gravestone doji, indicating a possible short-term reversal. Strength in mid- and large-cap banking names underpins sentiment, while RSI’s uptick from oversold levels adds to the bullish bias. Support levels are placed at 53,401 and 53,028, while resistance levels stand at 54,604 and 54,976. Sustaining momentum above 54,000 could invite further buying interest in the banking pack.

Sensex

The Sensex jumped 554.84 points (0.7%) to close at 80,364.49, marking a decisive recovery and a fresh record close. The index displayed strong breadth with 23 of 30 constituents advancing, supported by gains in autos and IT. The price action has reclaimed strength near its 20-day moving average, and momentum indicators are turning favorable. Near-term support is seen at 79,778 and 79,415, while resistance lies at 80,951 and 81,314. A sustained move above 80,400 may fuel further upside toward the next psychological milestone of 81,000.

FINNIFTY

The FINNIFTY ended the session at 25,743.5, up 0.69%, as broad-based buying drove the index higher. The bullish momentum follows strong GDP data, improving sentiment across financials. With 18 of 20 constituents in the green, the index shows healthy participation, while RSI’s rebound signals a potential continuation of the trend. Immediate support rests at 25,550 and 25,420, while resistance levels are seen at 25,910 and 26,060. Holding above 25,700 will be key for sustaining bullish momentum in the near term.