Sensex and Nifty Extend Rally

On Tuesday, the Sensex gained 208.17 points, or 0.25 percent, to close at 84,273.92, bringing its three-day rally to 960 points. The Nifty added 67.85 points, or 0.26 percent, ending at 25,935.15, marking a cumulative gain of 292 points over the past three sessions.

Several large-cap stocks reached fresh 52-week highs, including State Bank of India (SBI), Tata Steel, Titan Company, and UltraTech Cement.

Top Gainers and Sector Performance

Eternal emerged as the top gainer on the Sensex, rising 5.14 percent to Rs 303.70, followed by Tata Steel (2.82%), Mahindra & Mahindra (1.79%), Tech Mahindra (1.66%), Power Grid (1.36%), and NTPC (1.35%).

Among sectoral indices, the BSE Auto index climbed 1.35 percent to 62,553.83, while the BSE Metal index rose 0.83 percent to settle at 40,292.44.

Market Sentiment and FII Inflows

According to Vinod Nair, Head of Research at Geojit Investments, the rally is supported by a strong resurgence in FII inflows and rupee appreciation, despite intermittent profit-booking across sectors.

Shrikant Chouhan, Head Equity Research at Kotak Securities, highlighted that the short-term market outlook remains positive. He added that if the Nifty slips below 25,900/84,100, the market could retest levels around 50-day SMA or 25,800-25,750/83,700-83,500.

Analyst Recommendations

Ajit Mishra, SVP Research at Religare Broking, reiterated a bullish stance on the Nifty, recommending a buy-on-dips strategy. He expects consolidation around current levels before the index makes another attempt to cross 26,000 decisively.

Ponmudi R, CEO of Enrich Money, noted that momentum indicators remain largely unchanged. The near-term outlook is mildly positive, with upside limited unless there is a breakout above 26,000, which could push the market toward 26,300.

Key Levels to Watch

• Support Levels: 25,800 / 25,750
• Resistance Levels: 26,000 / 26,100-26,150
• Next Target: 26,300 if the Nifty sustains above 26,000

Market breadth remained positive on BSE, with 2,600 stocks in the green out of 4,407 actively traded counters. 127 stocks hit fresh 52-week highs, while 128 stocks touched lower circuit limits.

Conclusion:

The Sensex and Nifty continue to show a bullish trend, supported by domestic and global factors. Investors should adopt a buy-on-dips approach, focus on careful stock selection, and watch key support and resistance levels closely for potential upside opportunities.