Nifty Rallies for Third Session on Risk-On Sentiment

The Nifty climbed 255 points to close at 22,968, marking its third consecutive session of gains. After opening 67 points higher, the index faced early selling pressure, dropping over 250 points from the morning high in the first two hours. Post 11:15 AM, it staged a sharp reversal, surging more than 450 points from the day's low to settle near the high. Nifty has never risen for more than three trading session since the U.S-Iran War started in late February. This streak will come to an end if Nifty extends the pullback for one more session. Trading activity was somewhat subdued, with NSE cash market volumes dipping 1% compared to the previous session.

In the Nifty pack, Trent, SBI Life, and Titan led gains, while Reliance, ONGC, and Max Health saw the heaviest selling. Except for Oil & Gas and Media, all sectoral indices ended positive, led by Consumer Durables, PSU Banks, and Realty.

Mid- and small-caps outperformed, with Nifty Midcap 100 up 1.52% and Smallcap 100 rising 1.29%. Market breadth stayed robust, reflected in a BSE advance-decline ratio of 2.78.

The rupee appreciated 4 paise, supported by retreating crude prices and risk-on sentiment fueled by hopes of Middle East de-escalation.

Technically, after indecisive weekly candlestick pattern, Nifty has attracted follow-up buying. Daily RSI shows double positive divergence, signaling a higher chance of a sustainable uptrend. The short-term trend has turned bullish, targeting resistance at 23,465, with nearer hurdles at 22,800 and 22,540.

HSL PRIME RESEARCH