Market Wrap

Indian equities extended gains on Tuesday, with the Nifty 50 rising 0.28% to close above 25,050 after a flat start and brief intraday dip. The rally was led by consumer and automobile stocks, which outperformed amid sustained buying interest. While profit booking emerged in the last half hour, domestic markets displayed resilience, shrugging off weak global cues. Globally, US indices ended mixed, with sharp losses in the NASDAQ dampening sentiment in Asia and Europe, leading to subdued trade. However, domestic optimism around reforms kept Indian markets buoyant, with investors looking past Trump’s latest geopolitical warnings. The focus remained on the GST Council’s Group of Ministers (GoM) meeting, which has raised expectations of further tax rationalisation and reforms, breaking the recent two-session consolidation.

What's Ahead

Markets are set to track GST reform developments, as progress on tax rationalisation could boost consumer and corporate sentiment in the near term. The sustained strength in consumer and auto sectors may continue to support the Nifty’s positive bias. However, weak global signals and geopolitical overhang remain potential headwinds that could limit sharp upside.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty

The Nifty 50 staged a smart late-session rally to reclaim the 25,000 mark, closing at 25,050.55 (+0.28%). Strength in IT and FMCG majors offset weakness in banking stocks, reflecting sectoral rotation. The index’s ability to sustain above 25,000 is a constructive sign, with RSI inching towards 60, indicating improving momentum. On the downside, 24,873/24,764 will act as key supports, while immediate resistance is seen at 25,228/25,338. A decisive close above 25,338 could trigger a move towards 25,500 levels.

Bank Nifty

The Bank Nifty remained under pressure, closing at 55,698.5 (-0.30%) with 10 of 12 constituents in the red. Despite an intraday dip below 55,600, the index managed to recover marginally, signaling some buying interest at lower levels. However, RSI slipping further below 50 points to weak momentum. For the near term, 55,344/55,125 are crucial supports, while 56,053/56,272 are key hurdles. Sustained weakness below 55,125 could accelerate selling towards 54,800, whereas a close above 56,272 may trigger recovery.

Sensex

The Sensex added 213 points (+0.26%) to settle at 81,857.84, aided by IT majors, while banking names capped gains. The index maintained a higher-low structure on the daily chart, hinting at resilience despite sectoral pressure. Near-term support is placed at 81,337/81,014, while upside resistances lie at 82,379/82,702. A move above 82,702 could extend the uptrend, whereas failure to hold 81,014 may drag it towards 80,700 levels.

FinNifty

The FinNifty underperformed, slipping 0.39% to 26,487.8, dragged by banking and NBFC names, even as insurance counters provided some cushion. The index is showing signs of distribution at higher levels, with RSI also tilting lower. Key supports are at 26,374/26,252, while resistances stand at 26,681/26,793. A breakdown below 26,252 could invite further weakness, while a close above 26,793 would be needed for any meaningful rebound.