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Market Closing Commentary

Indian benchmark indices extended their gains and closed near the day's high, supported by broad-based buying interest and a sharp rebound in IT stocks. Positive momentum across the broader market, along with sustained investor participation, helped the benchmark indices end the session on a strong note. At close, the Nifty 50 gained 0.71% to settle at 24,175, while the Sensex advanced 0.75% to close at 77,502.

On the sectoral front, Nifty IT emerged as the top-performing sector, surging 4.64% on strong buying interest. Auto stocks also witnessed healthy gains and supported the broader market rally. On the downside, Nifty PSU Bank remained the key laggard, witnessing selective profit booking during the session. The broader market continued to outperform the benchmark indices. The Nifty Midcap 100 index gained 0.48%, while the Nifty Smallcap 100 index advanced 1.25%, reflecting sustained buying interest and improving risk appetite across the broader market.

Nifty Outlook

Nifty gained for the second session in a row as it formed a bullish candlestick pattern in the daily chart with a higher high and higher low signaling continuation of the positive momentum. Buying demand during current week has emerged on expected lines 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, bias remain positive and index to head towards 24,260 and 24,350 levels in the coming session being the high of last month and previous gap area. With immediate support placed at Thursday gap area of 24,000-24,050. Key observation in the daily chart is that the index has generated a bullish crossover of 20 and 50 days EMA highlighting strength. The index has key 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 formed a small bear candle with an upper shadow signaling consolidation amid stock specific action around the 58,000 levels. 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% and 150% 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 marks, 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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