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Market Closing Commentary

Indian benchmark indices opened on a positive note and extended their gains throughout the session, supported by improving global sentiment, easing geopolitical tensions, and stable crude oil prices. The Nifty maintained its upward momentum and closed near the crucial 24,000 mark, reflecting sustained buying interest despite some sector-specific weakness. At close, the Nifty 50 gained 0.59% to settle at 24,005, while the Sensex advanced 0.58% to close at 76,922.

On the sectoral front, Nifty Realty and FMCG emerged as the top-performing sectors, witnessing broad-based buying interest throughout the session. In contrast, Nifty IT and Metal remained the key laggards, as selling pressure persisted in technology and commodity-linked stocks. The broader market also ended on a positive note, indicating healthy market participation beyond the benchmark indices. The Nifty Midcap 100 index gained 0.34% to close at 62,008, while the Nifty Small cap 100 index advanced 0.36% to settle at 18,931.

Nifty Outlook

Nifty snapped its two sessions decline and closed higher by more than 0.5% to close around the 24,000 levels. In the daily chart it has formed a bullish candlesticks pattern which mostly remained contained inside previous session price range highlighting pullback after three sessions corrective decline.

Buying demand on Wednesday session emerged from near the support area of 23,800 being the confluence of the previous gap area, last two weeks lows and the 20 & 50 days EMA. Going ahead, in the coming session a follow through strength above Wednesday high 24,050 will open upside towards 24,120 and 24,260 levels being the highs of current week and last week respectively.  

The index has immediate support around the 23,900-23,800 levels holding above the same will keep the bias positive and index to gradually head towards 24,500-24,600 levels in the coming weeks.

Bank Nifty Outlook

Index snapped its two sessions decline and closed higher by more than 0.5% to close around the 58,000 levels. In the daily chart it has formed a bullish candlesticks pattern with a higher high and a higher low highlighting buying demand around the recent breakout area.

Going ahead, a move above last week high of 58,700 will open further upside towards 59,200 and 60,000 level in the coming weeks, being the 138.2% external retracement of the previous decline from 57,456 to 52,783. Failure to move above last week's high is likely to keep the index consolidating within the 57,000–58,500 range. 

The lows of the last two weeks are almost identical around the 57,000 mark, making it a crucial short-term support level. The overall bias remains positive, hence the current breather should be used to accumulate quality banking stocks in staggered manner for the next leg of up move.

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