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Benchmark indices staged a strong rally of around 1% each, driven by sharp gains in auto, consumption, metal, and realty stocks. Investor sentiment was buoyed by reports of a streamlined Goods and Services Tax (GST) structure, expected to boost spending and fuel consumption. The Nifty opened on a strong note and climbed to an intraday high of 25,022 during mid-session. However, some profit booking at higher levels led the index to pare a portion of its gains, eventually closing at 24,882.50, up 251 points or 1.02%. Sector-wise, Nifty Auto led the charge with a stellar gain of 4.18%, followed by Nifty Realty, which rose 2.17%, and Nifty Metal, up 1.86%. FMCG and PSU Bank indices also traded positively, advancing 1.2% and 0.4%, respectively. On the downside, Nifty IT dipped 0.57%, while Energy, Pharma, and Media sectors remained largely flat. Broader markets outperformed the benchmarks, with the Nifty Midcap 100 rising 1.08% and the Nifty Smallcap 100 adding 1.38%.

Nifty Outlook

The index formed a bear candle with a sizable upper shadow and a bullish gap below its base ( 24631-24852) signaling profit booking around the 25,000 levels. The index in the process closed above the 20- and 50-days EMA. Going ahead a follow through strength above Monday’s high (25022) will open upside towards 25,250 levels in the coming sessions. Failure to do so will signal consolidation in the range of 25,000-24,500. Immediate support for Nifty is placed at 24,500 levels, while key support is placed around 24,000–24,200 range marked by the confluence of the 200-days EMA and an ascending trendline drawn from the February and March 2025 swing highs, making it a key demand zone for the near term.

Bank nifty Outlook

Bank Nifty formed a bear candle with a sizable upper shadow and a bullish gap below its base ( 55,647-55,342) signaling profit booking around the 56,000 levels. Buying demand in the last few sessions has emerged from the 100 days EMA. We expect the index to consolidate in the range of 54,800-56,300. Only a movement beyond this range will signal the next directional move. Key support area 54,800 and 55,000 — a region that aligns with the 100-day exponential moving average (EMA) and key Fibonacci retracement levels from the prior upward move. A breach below 54,800 will open downside towards 54,000 levels. On the higher side resistance is seen around 56,000–56,300 range, which corresponds to the recent breakout area and the 50% retracement of the entire decline (57628-54905)

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