Nifty Holds 24,165 as Financials, Adani Stocks Lead Sector Rotation

The Nifty 50 held at 24,165.75 by midday Friday, up 203 points or 0.85%, as leadership rotated from IT to financial and infrastructure stocks. The BSE Sensex traded at 77,394.76, up 653 points.

Market breadth was strong. Of 4,211 stocks traded on the BSE, 2,786 advanced against 1,222 declines. The Nifty 50's Advance Decline Ratio stood at 34:16. A total of 117 stocks hit 52-week highs.

Jio Financial Services was the top Nifty 50 gainer, rising 3.34% to ₹241.16. HDFC Life Insurance gained 3.01% to ₹568.45. Adani Enterprises advanced 2.67% to ₹3,166.00, while Adani Ports rose 2.12% to ₹1,838.20. IndiGo climbed 2.10% to ₹5,339.50.

Reliance Industries, ICICI Bank, and HDFC Bank were the top contributors to Nifty's gains, according to SBI Securities. IT stocks continued to show strength after Tata Consultancy Services reported better-than-expected quarterly results.

"Better-than-expected quarterly results from TCS have further boosted investor sentiment, with the IT sector emerging as one of the key gainers in early trade," said Ponmudi R, CEO of Enrich Money, a SEBI-registered trading and wealth-tech firm.

Consumer and pharma stocks faced selling pressure. Eternal was the top Nifty 50 loser, declining 1.59% to ₹287.80. Dr Reddy's Laboratories fell 1.17% to ₹1,246.70. Bharti Airtel weakened 1.06% to ₹1,910.70. Apollo Hospitals dipped 0.39% to ₹8,811.00, and Coal India edged down 0.33% to ₹428.50.

Crude oil prices retreated to near $72 per barrel. MCX Crude Oil opened above ₹6,900 after rejecting highs near ₹7,300, with resistance at ₹6,950–₹7,000. "The near-term bias remains bullish, with volatility contingent on Middle East and Strait of Hormuz developments," Ponmudi noted.

COMEX Gold traded above the $4,100–$4,120 support zone, with resistance at $4,200–$4,230. MCX Gold was trading near ₹1,45,000. COMEX Silver held near $61, while MCX Silver traded around ₹2,26,000.

The Indian rupee remained under pressure despite softer crude. USD/INR traded near ₹95.2, range-bound between ₹95.1 and ₹95.4. "Lingering geopolitical tensions in the Middle East continue to keep the domestic currency under pressure," Ponmudi said.

SBI Securities placed Nifty support in the 24,020–24,040 zone and resistance at 24,270–24,290. A break below 24,020 could expose the 23,870–23,890 band. A move above 24,290 could extend gains toward 24,490. For Sensex, support was at 76,700 and resistance at 77,500.

Options data pointed to a cautious structure. "Meaningful call writing was witnessed across 24,200 and 24,300 strikes. On the put side, 24,100 has substantial open interest, followed by 24,000," SBI Securities noted.

For traders tracking the rotation, the shift from IT to financials and infrastructure stocks is the session's defining feature. The Nifty's narrow trading band of less than 0.25% for most of the morning suggests the index is consolidating before the next directional move. A close above 24,290 would signal strength, while a break below 24,020 would put the 23,870 support zone in play.