Sensex trims gains to settle 50 pts higher, Nifty above 25,450; what lies ahead for stock market?

Domestic equity benchmarks BSE Sensex and NSE Nifty gave up their early gains on Wednesday but still ended the session in positive territory, a day after witnessing a sharp sell-off.

At the close, the Sensex gained 50.15 points, or 0.06 per cent, to settle at 82,276.07. The Nifty rose 57.85 points, or 0.23 per cent, to finish at 25,482.50.

Despite a strong start, benchmark indices gradually pared their early gains as profit booking at higher levels weighed on sentiment, said Ponmudi R, CEO of Enrich Money. 

“The broader undertone remained measured, as investors refrained from aggressive positioning amid the absence of strong domestic triggers and mixed global cues,” Ponmudi said.

Top gainers & losers

Among Sensex constituents, HCL Technologies emerged as top gainer, rising 2.80% to Rs 1376.85. Tata Steel followed with a 2.63% gain, while TCS, InterGlobe Aviation, Sun Pharma, and Mahindra & Mahindra (M&M) rose 2.14%, 1.95%, 1.84% and 1.65%, respectively. 

While Reliance Industries and State Bank of India (SBI) were top losers on the Sensex, falling up to 2.23% today.

Five stocks, namely ICICI Bank, Tata Consultancy Services (TCS), Mahindra & Mahindra (M&M), Infosys and Larsen & Toubro (L&T), contributed heavily to the Sensex’s gain.  

“Banking and select large-cap stocks provided stability, while the IT sector showed early signs of recovery through selective buying and short covering following recent weakness. However, the rebound in IT remained gradual rather than broad-based, indicating an improvement in sentiment but not yet confirming a sustained trend reversal,” Ponmudi said.

Among sectoral indices, the BSE IT index jumped 1.39% to close at 29,649.36, while the BSE Auto advanced 1.82% to settle at 62,982.76.

In the Sensex index, shares of Tata Steel and NTPC hit their 52-week high of Rs 216.50 and Rs 388.50 on BSE. 

“The rejection near the 50-pack highs indicates supply continues to emerge in the 25,650–25,800 zone. Immediate support is placed at 25,400–25,350, while resistance remains at 25,800–25,850,” said Gaurav Udani, Founder – Thincredblu.

Technically, Nifty remains in a sideways range, with neither bulls nor bears establishing clear control. A decisive move beyond the current resistance or a breakdown below support will likely determine the next trend, Udani added.

Market breadth remained negative on BSE. Of the 4,370 actively traded stocks, 2,067 ended in the green, while a dominant 2,131 declined and 172 settled unchanged. The session saw 114 stocks scaling fresh 52-week highs, compared with 323 counters sliding to new 52-week lows. In addition, 157 scrips were locked at their upper circuits, whereas 169 hit lower circuit limits.

“The 25,350–25,400 zone now stands as the immediate and crucial support. A decisive break below this band could expose the index to the next major OI-backed support at 25,000, where 1.35 crore put OI is positioned,” said Hariprasad K, SEBI-registered Research Analyst and Founder, Livelong Wealth.

“On the upside, resistance remains firmly placed at 25,500 followed by 25,700. Technically, the index continues to oscillate within the 25,350–25,700 range, indicating a neutral consolidation phase,” Hariprasad added.