Benchmark equity indices snapped a three-day losing streak on Thursday, closing firmly in the green as investors reacted positively to the U.S. Federal Reserve’s latest rate cut.
The S&P BSE Sensex rose 426.86 points to end at 84,818.13, while the NSE Nifty50 climbed 140.55 points to 25,898.55.
Broader markets also recovered after a shaky start, with sentiment improving through the session. The Fed’s 25-basis-point cut set the tone, although concerns around the Indian rupee’s slide to a fresh record low and lingering uncertainty over India–U.S. trade negotiations capped the upside.
Adani Enterprises, Jio Financial Services, Tata Steel, Eternal and Kotak Mahindra Bank were the top performers on the Nifty50. Asian Paints, SBI Life, Bharti Airtel, Power Grid and ONGC were among the laggards.
Ponmudi R, CEO of Enrich Money, said the Fed’s widely expected rate cut improved sentiment despite several headwinds. He noted that the upmove was tempered by the sharp decline in the rupee and weak signals from global markets, including a sell-off in U.S. futures after Oracle issued a softer revenue forecast.
“Despite these pressures, markets managed to close in the green, though the undertone remained cautious,” he said.
Nifty defended its rising channel support for the third straight session, signalling that the broader uptrend remains intact. After opening weak, the index took support near the 50-EMA zone around 25,735 to 25,750 and rebounded sharply from the intraday low of 25,693.
It ended the session near 25,901, reclaiming the 20-EMA at 25,950, which indicates renewed buying on dips. A close above the 25,950 to 26,000 zone is still essential for the next leg higher towards 26,150 to 26,250. On the downside, 25,735 to 25,700 remains the key support zone.
The options market also reflected a clear battle between bulls and bears. Heavy call writing around 25,950 to 26,000 created an immediate supply cap, although put writers held firm at 25,800 and 25,700, signalling confidence from the bull camp.
Bank Nifty rebounded from its rising channel and 20-EMA support around 58,900 to 59,000, closing at 59,198. The recovery hinted at rotational buying returning to financial stocks.
Technical analyst Vatsal Bhuva of LKP Securities said the index is still lacking clear direction. “Bank Nifty formed a small candlestick in Thursday’s session, reflecting sideways consolidation with a mild bearish undertone. Although it has reclaimed its 20-day EMA, a crucial hurdle remains at the 10-day EMA,” he said.
He noted that immediate support lies at 58,800, while resistance stands at 59,350. “A decisive close above 59,500 would confirm bullish momentum, while a breakdown below 58,800 may trigger further selling towards 58,200, where the 50-day EMA is placed,” he added.
Ponmudi expects stronger momentum if Bank Nifty sustains above 59,400 to 59,500, which could take it toward 59,900 to 60,100.
