Nifty holds 24,200 floor as IT stocks rally for a fifth session, offsetting bank weakness. US PCE inflation print later Thursday is the next catalyst.
India's equity benchmarks traded inside a 0.25% band for the third straight session on Thursday, with gains in IT stocks offsetting weakness in banks. The Nifty 50 sat at 24,296, up 0.19%, while the Sensex was at 77,828, up 0.22% at midday.
The lack of directional momentum reflected competing forces. A divided Federal Reserve, fresh US strikes on Iran, and anticipation of the US PCE inflation print due later Thursday all kept traders from committing. The Fed's preferred inflation gauge–after CPI at 3.5% and PCE at 4.1%, both above the 2% target–could tip markets, according to Ankita Pathak, Head of Global Investments at Ionic Asset. She noted that three dissenting FOMC votes and the absence of forward guidance have reinforced a data-dependent policy stance. If the Fed tightens, Pathak said, the dollar could strengthen, weighing on commodities and emerging-market assets.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said the Nifty's support zone lies at 24,130–24,150, while resistance is placed at 24,370–24,390. "In an event of a surge above 24,390, the index can experience an extension of the rally towards 24,590," he noted, adding that a slip below 24,130 would expose the 23,980–24,000 zone. On the Sensex, support stands at 77,200 while resistance is at 78,000.
Ponmudi R, CEO of Enrich Money, pointed to call writing at the 24,300 and 24,400 strikes, with put open interest concentrated at 24,200 and 24,100. "A sustained breakout above this band and the previous session's high could reinforce bullish momentum and extend the rally towards the 24,400–24,500 region," he said, while cautioning that a decisive move below 24,150 could shift the near-term outlook back to a cautious bias.
Bank Nifty slipped below 57,000 in early trade, with ICICI Bank and Axis Bank among the top drags on the broader index. Shah pegged the key support at 56,800 and resistance at 57,300–57,400. The Nifty Bank's underperformance has been a recurring theme this week, with the sector lagging the broader market by roughly 1.5% since Monday's close.
IT stocks were the day's standout. The Nifty IT index extended its rally to a fifth consecutive session, rising over 1.5%. Wipro led the Nifty 50, climbing 2.64% to ₹188.45. Tech Mahindra gained 2.18% to ₹1,680.10, and Infosys added 1.75% to ₹1,175.80. Max Health rose 1.94% to ₹1,133.00, and Coal India climbed 1.48% to ₹416.10. The sustained IT rally has added roughly 4% to the sector index over the past week, with no single catalyst dominating–traders cited a mix of short-covering, dollar-rupee stability, and selective earnings optimism.
On the losing side, Adani Ports was the top Nifty 50 decliner, falling 3.20% to ₹1,664.70. Shriram Finance dropped 1.93% to ₹1,024.50, Eternal slipped 1.38% to ₹307.50, HDFC Life fell 1.37% to ₹549.10, and Jio Financial Services declined 1.29% to ₹246.26.
In commodities, gold was outperforming silver globally, driven by safe-haven demand following fresh US strikes on Iran. COMEX Gold faced resistance near the $4,140–$4,160 zone, while MCX Gold traded steadily with support at ₹1,41,000–₹1,40,600 and resistance at ₹1,42,300. COMEX Silver was down 0.53% near $57.725, while MCX Silver was trading near ₹2,16,300, tracking a broader decline in global silver prices. MCX Crude Oil opened with a gap-down near ₹8,000, while US WTI Crude was near $83.7 per barrel.
The US dollar index closed at 100.9, down roughly 0.5%, while the Indian rupee stabilised around ₹95.6 against the dollar, with the USD/INR pair facing technical resistance at ₹95.70–₹95.78.
The Nifty's Advance-Decline ratio stood at 27:23, while on the BSE, 1,611 stocks advanced against 2,136 declines, with 89 stocks hitting 52-week highs and 58 at 52-week lows. The breadth data suggests the index-level flatness masks a more divergent picture beneath the surface–a pattern that often precedes a directional move once the PCE catalyst passes.
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