Market Wrap

Indian equities staged a constructive session on Thursday as the Nifty decisively reclaimed the 26,000 mark, closing at 26,052.65 (+0.55%). The rally, however, was driven by a narrow set of leaders, with IT stocks surging nearly 3% and PSU banks contributing meaningfully, even as broader market participation remained weak. Market breadth reflected caution — 1,413 stocks advanced vs 1,703 declined, suggesting that midcaps and several pockets outside IT and banking continued to struggle. Sectorally, Realty was the weakest, slipping around 0.35%. Sentiment was buoyed by renewed optimism around India–US trade discussions, where investors are hoping for clarity on tariff structures and export norms, and by the start of pre-budget consultations, which nudged risk appetite toward quality, policy-sensitive, and export-oriented names. Overall, the session appeared constructive but clearly not broad-based, signifying a rally led by strength in select heavyweight sectors rather than across-the-board buying.

What's Ahead

Volatility may stay elevated, but the short-term bias remains positive if IT and banking sectors maintain leadership and FIIs continue incremental buying. Key catalysts that could influence market direction include headlines on the India–US trade deal, progress or hints emerging from pre-budget policy discussions, and global signals from U.S. economic data and Federal Reserve commentary. Traders should also track upcoming corporate earnings — any disappointment from sectors outside IT could narrow the rally even further, while stronger-than-expected results may broaden participation. In the near term, stock-specific opportunities in IT and PSU banks look favourable, but a wider market breadth will be essential for confirming a durable uptrend.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 slipped 103.40 points to close at 25,910.05 (-0.40%), breaking its six-day winning streak as traders turned defensive ahead of key U.S. macro data. The decline was broad-based, with 42 out of 50 stocks closing lower. Heavyweights such as Tata Consumer, Tech Mahindra, Jio Financial, and Indigo dragged the index, while Bharti Airtel, Axis Bank, and Asian Paints showed relative strength. Intraday, the index failed to sustain above the 26,000 zone and drifted toward session lows. The RSI has slipped toward 60, signalling a softening in momentum though still not indicating weakness. Key support levels to watch are 25,721 and 25,607, while resistance remains firm at 26,089 and 26,203. A break below 25,720 could accelerate profit-booking.

Bank Nifty

Bank Nifty ended slightly lower at 58,899.25 (-0.11%), reflecting mild cooling after a strong multi-day rally. Gains in Federal Bank, Axis Bank, and AU Bank were offset by declines in IDFC First Bank, IndusInd Bank, ICICI Bank, and HDFC Bank, keeping the tone subdued. Despite the dip, RSI remains above 70, indicating the index is still in an overbought but strong zone. Intraday selling from resistance near 59,103 capped upside attempts. Near-term support is placed at 58,440 and 58,156, while resistance remains at 59,358 and 59,643. Sustained trade above 59,350 will be needed to resume upward momentum.

Sensex

The Sensex closed 277.9 points lower at 84,673.02 (-0.33%), weighed down by losses in Tech Mahindra, Infosys, Bajaj Finance, and Eternal. Only seven constituents ended in the green, led by Bharti Airtel, Axis Bank, and Asian Paints, signalling defensive buying. The index continues to consolidate after recent highs, with immediate support at 84,164 and 83,818. Resistance remains at 85,283 and 85,630, and a close above 85,300 will be essential to revive bullish momentum.

FINNIFTY

FINNIFTY slipped 99.45 points to finish at 27,546.75 (-0.36%), reflecting cooling momentum after recent gains. Losses in SBI Card, Jio Financial, Muthoot Finance, and Bajaj Finserv were key drags. Meanwhile, Axis Bank, Shriram Finance, and Chola Finance provided some support. Heavyweights HDFC Bank and ICICI Bank also closed lower, keeping the index subdued. Immediate support is at 27,338 and 27,223, with resistance located at 27,712 and 27,828. A breakout above 27,720 is required for any continuation of upside.