Though, the Nifty showed minor upmove on Wednesday, the overall market breadth was very strong with outperformance seen in broad market indices. The Nifty Midcap100 and Smallcap100 witnessed strong buying interest, closing with gains of over 2.5% each.
Financial heavyweights HDFC Bank and ICICI Bank, along with Reliance Industries were the biggest contributors to the Nifty’s gains.Key factors driving the market include foreign institutional investor (FII) inflows of ₹1,463 crore into Indian equities after 17 continuous sessions of selling, along with softness in the US dollar index.
Amongst sectors, there was a sharp rally in financial services, realty, PSU banks, healthcare and metal indices as investors indulged in value buying. However, the IT index remained under pressure due to growth concerns, with Tech Mahindra, TCS, and Infosys among the top Nifty losers.
Following the recent surge, markets will react to the US Federal Reserve’s meeting outcome in early Thursday trades, with attention then shifting to the weekly expiry.
Domestic institutional investors turned net buyers in cash market on Wednesday, while foreign investors sold Rs 1,097 crore in equities.
What do the Nifty 50 charts indicate?
The Nifty is currently nearing a crucial overhead resistance of around 23,000-23,100 levels. Nagaraj Shetti of HDFC Securities believes that this is going to be an important hurdle for the market and there is a possibility of some more consolidation or minor dip from the highs in the next 1-2 sessions. Immediate support is placed around 22,800-22,750 levels.The Nifty continues to trade in the green as sentiment favours the bulls, though a significant upside move was limited. The index has been closing above the 21EMA for the last two days, confirming the bullish trend.
“The RSI is in a bullish crossover and rising. In the short term, the trend is likely to remain positive, with a possible consolidation in the next two three days. Support is placed at 22,600. On the higher end, resistance is placed at 23100-23150,” said Rupak De of LKP Securities.
The confluence zone near 23,000, coinciding with the weekly expiry and post-FOMC developments will be crucial. A decisive move beyond this level could drive an extension towards 23,200 and further towards the 200SMA at 23,400 in the near term. On the downside, in case of any negative outcome and a subsequent price dip, the 22,750–22,700 zone is likely to act as a strong buying opportunity, said Rajesh Bhosale of Angel One.
Here are the stocks to watch ahead of Thursday’s trading session:
– NHPC board approves borrowing plan for raising of debt up to ₹6,300 crore during FY26 via NCDs.
– IREDA launched its first issue of “perpetual bonds.” The company plans to raise ₹1,247 crore through this perpetual bond issue. The company has fixed an annual coupon rate of 8.4% for the bond issue.
– Indian Overseas Bank Ltd. has launched a Qualified Institutional Placement (QIP) to raise up to ₹2,000 crore.
– Trent: Arm Booker India to acquire 100% equity of THPL Support Services from Trent Hypermarket for ₹166.36 crore.
– Hyundai Motor India to hike prices of its vehicles up to 3%, effective April 2025.
– Raymond: Nawaz Singhania has resigns as the Non-Executive Director of the company, effective today.
– HIL: Changes company’s name to ‘BirlaNu Limited’ from ‘HIL Limited’.
