The closing auction session (CAS) provided an additional boost, with the Nifty gaining nearly 75 points during the session and significantly contributing to the day’s gains.
The recent consolidation appears to have ended as the Nifty staged a strong rebound from the key support zone around 24,100.
Among Nifty 50 constituents, Adani Enterprises, Max Healthcare and Apollo Hospitals were the top gainers, while HDFC Life, Cipla and ONGC were the major laggards.
Sectoral performance was largely positive, with all sectoral indices ending higher except Nifty Metal and Nifty Private Bank. Healthcare, Consumer Durables and Pharma were the top-performing sectors.
Broader markets delivered a mixed performance. The Nifty Midcap 100 gained 0.54% to close at a record high, while the Nifty Smallcap 100 declined 0.10%.
The Indian rupee was among the best-performing Asian currencies, appreciating 34 paise to close at 95.41 against the US dollar. A sharp decline in crude oil prices and suspected central bank intervention supported the domestic currency, while the Dollar Index slipped below the 99 mark.
Going ahead, the decline in crude oil prices could provide some relief to Indian equities. Brent crude fell 3.2% to around $89 a barrel, its lowest level in a week, amid hopes of easing US-Iran tensions. However, developments around Iran and the Strait of Hormuz will remain key monitorables for crude prices, the rupee and foreign investor flows.According to Nandish Shah of HDFC Securities, the nearly 75-point gain during the CAS helped the Nifty engulf the moves of the previous three sessions in a single candle. The index also reclaimed its 20-day DEMA, placed around 24,300.
Shah said the Nifty has been respecting support from an upward-sloping trendline on the weekly charts, which has now moved up to around 24,100. On the upside, the 200-day DEMA near 24,375 remains an immediate hurdle, followed by 24,600.
Osho Krishan of Angel One said a sustained move above the 24,450-24,500 resistance zone could reinforce the positive momentum and pave the way for further gains in the coming sessions, provided the broader market structure remains supportive. He added that broader participation across midcaps and key sectors could provide further impetus to the market.
Nagaraj Shetti of HDFC Securities said the Nifty’s short-term trend appears to have turned positive following the formation of a new higher bottom. He sees the next upside levels at 24,500-24,600, while immediate support remains at 24,100.
LKP Securities’ Rupak De said the Nifty remained sideways to negative for most of the session before staging a sharp recovery in the final hour. The strong CAS finish added further momentum to the gains, with the index reclaiming its 20-day EMA after several sessions of underperformance.
