Market Wrap

Indian equities began the shortened trading week on a strong footing, with benchmark indices opening gap-up and sustaining buying interest through the session. Supported by firm GIFT Nifty cues and positive global signals, the Nifty climbed steadily to close at the day’s high, ending up 0.79% at 26,172, near a three-week peak.

Sectoral leadership came decisively from IT stocks, as the Nifty IT index surged over 2% on broad-based buying. A softer rupee against the dollar and renewed optimism around global technology spending added tailwinds to the sector. Overall market sentiment remained constructive, aided by continued FII inflows, strong put writing in Nifty options suggesting confidence in downside support, and the simultaneous emergence of Santa Rally and early Budget Rally expectations.

Globally, cues were supportive - US markets had closed sharply higher at the end of last week, Asian peers followed with solid gains, while European indices remained relatively subdued. Technically, the recent gap-up move helped Nifty decisively cross its earlier swing high of 26,057, reinforcing bullish undertones despite the holiday-shortened week and looming expiry-related volatility.

What's Ahead

If momentum sustains in the opening hour, the market could attempt further upside before settling into a range-bound phase as expiry pressures build. On the downside, key supports to watch are 26,090 and 26,050, while immediate resistance is placed at 26,245, followed by 26,325 and 26,405.

Traders should stay alert to global macro cues, currency movements, and any fresh overseas triggers, as these will likely dictate near-term direction in an otherwise high-momentum but expiry-driven environment.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its uptrend for a third straight session, closing higher by 206 points at 26,172, forming a strong bullish candle near the day’s high and confirming strength above the prior swing high zone. Broad-based participation, limited corrective pressure, and leadership from IT heavyweights continue to reinforce the positive structure. Technically, the index is comfortably holding above key short-term averages, while the RSI rising toward the 60 zone signals strengthening momentum rather than overbought conditions. As long as Nifty sustains above the 26,055–25,980 support band, the bias remains upward, with upside potential toward 26,295 and further to 26,369. Any intraday dips are likely to attract buying interest unless global or expiry-related volatility spikes sharply.

Bank Nifty

Bank Nifty maintained its positive bias, closing at 59,304 with steady gains and constructive breadth, despite some heavyweights underperforming. The index continues to hold above its 20-day EMA, indicating short-term trend support remains intact, while the RSI moving up from the 50 zone suggests improving momentum rather than exhaustion. The price action reflects consolidation with a bullish undertone, and a sustained move above 59,562 could open the door toward 59,722 in the near term. On the downside, 59,046–58,886 remains a critical support zone; a break below this range could lead to short-term consolidation, but for now, dips appear buy-on-decline.

Nifty Financial Services

FINNIFTY extended gains and closed at 27,479, reflecting selective strength within financials led by NBFCs, while some insurers and PSU banks capped the upside. The index structure remains constructive, with higher closes over consecutive sessions supporting a gradual uptrend. As long as FINNIFTY holds above the 27,308–27,199 support area, the near-term outlook stays positive, with resistance seen at 27,661 and 27,770. Momentum remains stock-specific, and traders may continue to see rotational moves rather than a sharp directional breakout.

Sensex

The Sensex surged 638 points to 85,567, posting a strong close with broad participation and clear leadership from IT and consumption-linked stocks. The index continues to trade firmly above its short-term support levels, indicating sustained bullish control. Technically, the structure remains positive with higher highs and higher lows intact, and momentum indicators favor continuation as long as the index holds above 85,192–84,952. On the upside, 85,970 is the immediate hurdle, followed by 86,210, where some profit-taking may emerge, especially given the truncated week and expiry-related volatility.