The Indian equity indices had a blockbuster rally on the back of India-US trade deal clinch on Tuesday. Analysts expect positive momentum to continue, even amid heightened volatility because of uncertain global cues.
“The index formed a bear candle (as close was below the open) with a sizable bullish gap ( 25108-25641) below its base signaling profit booking at higher levels after a strong opening on the weekly expiry trade,” said Bajaj Broking Research.
The research firm expects bias to remain positive if the index stays above the immediate support zone of 25,450. Key short-term support is placed between 25,100 and 24,800 levels, while on the upside Nifty can rally up to 26,000 and 26,350 levels in the coming sessions.
“With the deal-related uncertainty now being lifted, we believe that multiple positives will accrue in the form of reversal of FII outflows, INR recovering its lost ground and general improvement in sentiments towards Indian equities. Thus, we expect Indian markets to witness continued positive momentum in the near term, with sector/stock specific action, driven by recent trade deals (US and EU), Union Budget announcements and the ongoing Q3 earnings season,” said Siddhartha Khemka – Head of Research, Wealth Management, Motilal Oswal Financial Services.
Nifty Bank
Upcoming RBI monetary policy announcement is likely to keep the index on its toes. Analysts expect volatility to remain high amid uncertain global cues, as per Bajaj Broking Research.
“Index holding above the support area will keep the bias positive and will open upside towards 60,800 and 61,700 levels in the coming sessions,” the research firm added.
Market Recap
The Nifty 50 closed firmly in the green, surging more than 2.5% to end above the 25,700 mark and clocking its best performance since may 2025. Sensex jumped 2.54% to end at 83,739.13.
Midcap and small-cap indices outperformed, with both gaining nearly 3%, reflecting strong broad-based participation. Most sectoral indices ended higher, with realty leading the gains at nearly 4.8%, followed by infrastructure, energy, pharma and banking, while FMCG rose modestly and IT lagged other sectors.
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