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Market Closing Commentary

On September 3, benchmark indices staged a sharp intraday recovery, with the Sensex surging over 550 points from its session low to settle 407 points higher at 80,567.71, while the Nifty50 reclaimed the 24,700 mark, ending the day 135.45 points up at 24,715.05, reflecting a 0.55% gain.

The metal pack extended its winning streak for the third straight session, outperforming broader indices. Tata Steel and Jindal Steel & Power led the charge, rallying 6% and 5.5%, respectively, buoyed by tightening supply cues from China and a softening US dollar, which improves global pricing power. SAIL and Hindustan Copper followed suit, advancing 5.26% and 4.7%, respectively, as base metal sentiment remained bullish.

FMCG and consumer durables stocks caught a bid amid optimism around potential consumption-led tax rationalization as the GST Council commenced its two-day meet, sparking hopes of demand-side stimulus.

Market breadth was decisively positive, with the NSE advance-decline ratio at 2:1, underscoring broad-based buying. Sectorally, metals remained the star performers, while defensive plays like Pharma and FMCG also contributed to the upside, indicating diversified risk-on sentiment across the street.

Nifty Outlook

The index formed a bull candle which remained contained inside previous session price range signaling continuation of the consolidation amid stock specific action.

 Nifty is currently placed around the 20- & 50-days EMA placed around 24,800 levels which is likely to act as an immediate resistance.   

Going ahead index likely to extend consolidate in the range of 24,400-24,800. A breakout above 24,800 will open further pullback towards 25,000 levels.

Immediate support for the index is placed at 24,400-24,337 levels being the confluence of the recent lows and the key retracement area.

Bank nifty Outlook

Bank Nifty formed a bull candle which mostly remained contained inside previous session range signaling consolidation around the 200 days EMA.

Going ahead, index moving above Tuesday high (54,160) will open further upside towards major breakdown area of 54,800-55,000. Overall, we expect the index to extend consolidation in the range 53,300-55,000 in the coming sessions.

Bank Nifty has immediate support at 53,500-53,300 levels being the confluence of the 200 days EMA and the low of May 2025. A breach below the same will signal acceleration of decline towards the key support area of 52,500-52,000 levels in the coming week.

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