Market Wrap

Indian equities surged in a decisive risk-on session, with the Nifty jumping 1.24% to close just above 26,200, brushing against its all-time high of ~26,277. The index reversed an early open-low setup into a powerful breakout, fuelled by broad-based buying and healthy short-covering in recent underperformers.

Metals led the charge, staging a commanding comeback after weeks of weakness, while the Bank Nifty clocked a fresh intraday record at 59,554.95, reinforcing the bullish undertone.

Sentiment was buoyed by multiple macro tailwinds:

• The government’s ₹7,280 crore push for a rare-earth magnet manufacturing scheme,

• Reports of easing Russia–Ukraine tensions, and

• Rising conviction that the U.S. Fed could cut rates as early as December, with surveys indicating ~85% odds of easing.

Global cues also played their part, as strong overnight gains in U.S. markets and a follow-through rally across Asia and Europe bolstered flows into India. With the week and month-end dynamics in play, traders increasingly looked toward India’s Q2 GDP release on Friday as the next major catalyst — one that could either validate the rally or invite measured profit-taking.

What's Ahead

A sustained move above the resistance band could open the door to fresh record highs, provided domestic GDP data and global rate signals stay supportive. However, a weaker-than-expected GDP print or renewed geopolitical stress could trigger a sharp mean-reversion, especially in overheated pockets.

Traders should monitor :

• FII/DII flows,

• Crude and metal price trends, and

• Government clarification on the rare-earth scheme,as these can drive strong stock-specific action in the days ahead.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 surged 320.50 points to close at 26,205.30 (+1.24%), powered by broad participation across sectors. Leadership came from JSW Steel (+3.69%), HDFC Life (+2.80%), Bajaj Finserv (+2.55%), and Bajaj Finance (+2.51%), while heavyweights HDFC Bank (+1.54%) and ICICI Bank (+1.27%) offered steady index support. The index posted a strong open-low formation at 25,842.95, climbed to an intraday high of 26,215.15, and ended near the top of the range — a sign of sustained buying interest. With 44 out of 50 stocks advancing, breadth confirms a solid underlying bid. Technically, the RSI crossing above 60 indicates strengthening bullish momentum after a three-day decline. The index now holds immediate support at 25,987 and 25,851, while resistance sits at 26,425 and 26,560. A push above these resistance levels could extend the upward trajectory toward new highs.

Bank Nifty

The NIFTY BANK rallied 707.75 points to settle at 59,528.05 (+1.20%), supported by gains across major constituents. HDFC Bank, ICICI Bank, Axis Bank, Kotak Bank, and PNB all posted healthy advances, while SBI (-0.06%) remained flat to slightly weak. The index opened at 58,783.05, matched that at the day’s low, and marched to a fresh intraday high of 59,554.95, closing just below it — reflecting aggressive intraday buying. The RSI nearing 70 suggests strong momentum but also puts the index close to overbought territory, calling for caution near resistance. Key supports are seen at 58,962 and 58,612, with resistance levels at 60,094 and 60,444. A breakout above the upper resistance could trigger a fresh leg toward 61,000+, provided global cues and financials maintain their strength.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index advanced 390.10 points to close at 27,799.50 (+1.42%), outperforming major indices. The upmove was driven by strong buying in HDFC Life, Bajaj Finserv, Bajaj Finance, and Jio Financial, reflecting renewed appetite for financials amid improving rate-cut expectations. Only SBI Life and SBI ended in the red. With 18 out of 20 components advancing, the index shows clear bullish breadth. Support levels are placed at 27,564 and 27,413, while resistance is seen at 28,050 and 28,200. A breakout above 28,200 can accelerate momentum toward the 28,500 zone.

Sensex

The SENSEX climbed 1,022.50 points to finish at 85,609.51 (+1.21%), with widespread gains across financials, metals, and IT names. Bajaj Finserv (+2.63%), Bajaj Finance (+2.52%), and Tata Steel (+2.04%) led the rally, supported by strong moves in Infosys (+1.81%), Axis Bank (+1.75%), and HDFC Bank (+1.41%). Only Bharti Airtel and Asian Paints closed marginally lower. With 28 advances vs. 2 declines, market breadth remains firmly positive. The index now finds support at 84,866 and 84,409, while resistance lies at 86,344 and 86,801. Sustained moves above the resistance zone could push the benchmark toward new all-time highs.