Throughout the day, the Nifty traded in a tight 100-point range before ending 95 points higher at 24,869.
The market’s upward move was led by gains in IT stocks. Among the broader indices, the Nifty Midcap100 closed flat with a marginal gain of 0.18%, while the Smallcap100 added 0.34%.Global cues also supported the sentiment, as investor optimism strengthened ahead of the US Federal Reserve’s FOMC meeting scheduled for September 16-17. Weakening labor market data and pressure from the Trump administration further bolstered the case for a rate cut. Sectoral performance was mixed, but IT stood out.
Nifty IT led the rally with a 2.7% gain, supported by expectations of a potential US Fed rate cut, which typically benefits Indian IT exporters.
Infosys was the top performer, rising nearly 3% and surging up to 5% intraday after announcing that its board will consider a share buyback on September 11.
Looking ahead, Siddhartha Khemka of Motilal Oswal expects the markets to remain range-bound, with investors closely tracking developments around trade agreements and the outcome of the upcoming US Fed decision.What do the Nifty 50 charts indicate?
The Nifty traded with a positive bias and successfully reclaimed the 100-DMA, currently placed at 24,820. However, the index remains at a critical juncture as it nears the key resistance zone around 25,000, which continues to act as a major hurdle, said Nilesh Jain of Centrum Broking.
Jain pointed out that a decisive breakout above this level is essential to confirm the start of a fresh upward leg. On the downside, immediate support is seen at the 21-DMA, placed at 24,720.
According to Nagaraj Shetti of HDFC Securities, the Nifty appears to be forming a base for a potential decisive breakout above the 24,900-25,000 resistance zone, which aligns with a down-sloping trendline and recent weekly highs. Immediate support is seen at 24,750.
Rupak De of LKP Securities said that sentiment remains positive in the short term, with the index sustaining above the 21-EMA for the past few sessions. In the near term, he expects the Nifty to move towards 25,000 and beyond, while support on the downside is seen at 24,750-24,700.
Osho Krishan of Angel One said that the Nifty50 has now surpassed all key EMAs and is approaching the critical resistance zone at 24,900-25,000. A decisive breakout above this range could catalyse fresh momentum in the markets, boosting overall sentiment.
Krishan added, “On the lower end, the presence of key EMAs, the 50 DEMA and 20 DEMA between 24,800–24,750, is expected to offer strong support, along with a robust support zone at 24,700–24,650.”
