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What is the story about?
Indian equities extended Tuesday's gains to close at a three week high, with the Nifty holding firmly above the 25,750 mark.
The benchmark opened on a weak note amid selling pressure in IT stocks, slipping to an intraday low of 25,563, before staging a smart recovery from lower levels.
The index later traded in a range bound manner with a positive bias through the mid-to-later part of the session.
The Nifty ended the day 48 points higher at 25,776.
Trent, Eternal and ONGC led the gains on the Nifty, while IT heavyweights Infosys, TCS and HCLTech were among the top losers.
IT stocks witnessed sharp losses on concerns around an Anthropic AI tool, with the Nifty IT index plunging 5%.
Shares of Infosys, TCS, Wipro, Tech Mahindra, Persistent Systems, Coforge and HCLTech were all down over 7% in early trade. Infosys extended losses to nearly 8%, while TCS slipped below the ₹11 lakh crore market capitalisation mark.
Collectively, the five IT stocks on the Nifty 50 wiped out close to ₹2 lakh crore in market value in the first half of the session.
Hindustan Aeronautics Ltd. fell 6% after a report suggested that the company is out of the race to develop a stealth fighter jet. The stock last witnessed a fall of this magnitude on February 3, 2025, and has since lost nearly ₹18,000 crore in market capitalisation.
Sectorally, all indices closed in the green except IT and Healthcare. Consumer Durables, Oil & Gas and Metals were the top outperformers.
The broader markets continued to outperform the benchmarks, with the Nifty Midcap 100 rising 0.63% and the Nifty Smallcap 100 gaining 1.27%.
Globally, investors would track the interest rate decisions of BOE and ECB scheduled for Thursday.
On the domestic front, the earnings for the third quarter so far have been in line.
Siddhartha Khemka of Motilal Oswal expects Indian markets to remain firm with positive bias, with sector or stock specific action, driven by recent trade deals (US and EU), Union Budget announcements and the ongoing Q3 earnings season.
On the technical front, Nagaraj Shetti of HDFC Securities said the next upside hurdles for the Nifty are placed at 26,000 and 26,350 in the near term, while immediate support is seen at 25,600.
Sudeep Shah of SBI Securities said the immediate resistance lies in the 25,950 to 26,000 zone. A decisive breakout above this level could see the Nifty extend its pullback towards 26,200, followed by 26,400. On the downside, the 25,600 to 25,550 zone is expected to act as strong support.
Nandish Shah of HDFC Securities said that the Nifty has managed to close above its 50 day DEMA, currently placed at 25,647, indicating that the trend remains bullish as the index continues to trade above key moving averages.
Key support is seen in the 25,500 to 25,650 band, while resistance is placed at 25,863 and 26,373.
Meanwhile, the Nifty Bank index took support at its falling trendline breakout and indicated consolidation after the recent up move. Sustaining above the 60,000 mark in the coming sessions would reflect underlying strength.
Vatsal Bhuva of LKP Securities said the overall chart structure remains bullish, favouring a buy on dips strategy as long as the index holds above its short term 20-day and 50-day moving averages.
The benchmark opened on a weak note amid selling pressure in IT stocks, slipping to an intraday low of 25,563, before staging a smart recovery from lower levels.
The index later traded in a range bound manner with a positive bias through the mid-to-later part of the session.
The Nifty ended the day 48 points higher at 25,776.
Trent, Eternal and ONGC led the gains on the Nifty, while IT heavyweights Infosys, TCS and HCLTech were among the top losers.
IT stocks witnessed sharp losses on concerns around an Anthropic AI tool, with the Nifty IT index plunging 5%.
Shares of Infosys, TCS, Wipro, Tech Mahindra, Persistent Systems, Coforge and HCLTech were all down over 7% in early trade. Infosys extended losses to nearly 8%, while TCS slipped below the ₹11 lakh crore market capitalisation mark.
Collectively, the five IT stocks on the Nifty 50 wiped out close to ₹2 lakh crore in market value in the first half of the session.
Hindustan Aeronautics Ltd. fell 6% after a report suggested that the company is out of the race to develop a stealth fighter jet. The stock last witnessed a fall of this magnitude on February 3, 2025, and has since lost nearly ₹18,000 crore in market capitalisation.
Sectorally, all indices closed in the green except IT and Healthcare. Consumer Durables, Oil & Gas and Metals were the top outperformers.
The broader markets continued to outperform the benchmarks, with the Nifty Midcap 100 rising 0.63% and the Nifty Smallcap 100 gaining 1.27%.
Globally, investors would track the interest rate decisions of BOE and ECB scheduled for Thursday.
On the domestic front, the earnings for the third quarter so far have been in line.
Siddhartha Khemka of Motilal Oswal expects Indian markets to remain firm with positive bias, with sector or stock specific action, driven by recent trade deals (US and EU), Union Budget announcements and the ongoing Q3 earnings season.
On the technical front, Nagaraj Shetti of HDFC Securities said the next upside hurdles for the Nifty are placed at 26,000 and 26,350 in the near term, while immediate support is seen at 25,600.
Sudeep Shah of SBI Securities said the immediate resistance lies in the 25,950 to 26,000 zone. A decisive breakout above this level could see the Nifty extend its pullback towards 26,200, followed by 26,400. On the downside, the 25,600 to 25,550 zone is expected to act as strong support.
Nandish Shah of HDFC Securities said that the Nifty has managed to close above its 50 day DEMA, currently placed at 25,647, indicating that the trend remains bullish as the index continues to trade above key moving averages.
Key support is seen in the 25,500 to 25,650 band, while resistance is placed at 25,863 and 26,373.
Meanwhile, the Nifty Bank index took support at its falling trendline breakout and indicated consolidation after the recent up move. Sustaining above the 60,000 mark in the coming sessions would reflect underlying strength.
Vatsal Bhuva of LKP Securities said the overall chart structure remains bullish, favouring a buy on dips strategy as long as the index holds above its short term 20-day and 50-day moving averages.
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