Benchmark indices closed in positive territory on Wednesday but surrendered most of their intraday gains amid profit booking and heavy options activity at key resistance levels. The S&P BSE Sensex rose 150.30 points to finish at 80,718.01, while the NSE Nifty50 settled 19.25 points higher at 24,734.30.
Analysts said the day began on a strong note, with sweeping GST rate cuts fuelling broad-based buying in auto, FMCG, and consumer durable stocks. However, sustained selling pressure in the second half of trade eroded much of the early momentum.
Ponmudi R, CEO of Enrich Money, pointed out that derivatives positioning weighed on the index. “Nifty faced heavy call writing at 24,900–25,000, with 19 crore call OI outstanding and about 7 crore fresh call OI added today. On the parallel side, only 0.55 crore was added on puts so sellers effectively controlled the tape, and the Nifty Futures met strong resistance at 25,000. That’s why the index struggled to hold above the round number despite a positive start,” he said, adding that 24,700–24,500 remained a crucial support zone.
Ajit Mishra, SVP, Research, Religare Broking, highlighted the mixed sectoral performance. “Markets witnessed a volatile session and ended marginally higher, supported by sweeping GST reforms that signalled a structural tax overhaul. The Nifty opened on a strong note, led by sharp gains in auto and consumer staples, but profit-taking and weakness in select heavyweights dragged the index lower as the day progressed. Eventually, it closed with modest gains at 24,734.30. Sector-wise, auto, financials, and FMCG led the advance, while IT, energy, and realty were the notable laggards. The broader indices, however, underperformed after the recent upmove, losing over half a percent each,” he said.
According to Mishra, GST 2.0 reforms strengthen the case for a consumption-led recovery, with autos and consumer staples expected to benefit most, while select metals and infrastructure linked to rural stimulus also stay in focus. He cautioned, however, that global uncertainties, FII outflows, and U.S. tariff headwinds could cap near-term upside.
Hariprasad K, Founder of Livelong Wealth, said Nifty’s technical setup suggests a breakout could be near. “Nifty opened on a strong note with a gap-up start, driven by optimism around the new GST rates, but profit booking in the second half wiped out most of the early gains. Nifty nearly erased its intraday rise, even as India VIX stayed calm below 11, reflecting subdued volatility,” he said.
He noted that Nifty closed at 24,739, slipping below the 9-day EMA of 24,839, and is currently consolidating within a symmetrical triangle pattern. “On the upside, immediate resistance lies at 24,850–24,900, coinciding with the upper trendline and the short-term EMA. A sustained move above 24,900 may open the door for further gains toward 25,200–25,400. On the downside, key support rests at 24,400–24,450. A breakdown below this zone could trigger deeper corrections toward 24,200–24,000,” he said.
Among stocks, auto and FMCG majors gained on optimism around lower GST rates, while beverage makers came under pressure. Varun Beverages fell 3% after the GST Council raised taxes on carbonated drinks to 40% from 28%, sparking concerns for the sector.
Analysts said tomorrow’s trade could be crucial as Nifty hovers around a decision point, with price action near resistance and support levels likely to determine the next directional move.
