The Nifty 50 extended its gains for a second straight session on Thursday, reclaiming its 100-day moving average (DMA) for the first time since mid-February. The move was backed by stronger volumes and broad-based participation, although declining open interest suggests that short covering may have contributed to the rally. The index now approaches the upper end of its recent trading range, with the 24,250-24,265 zone emerging as the key level to watch on Friday.
The Nifty 50 rose 170 points to close at 24,175.70 after opening above the previous session's high and maintaining gains through the day. The benchmark ended near its intraday high, while the Nifty IT index posted its biggest single-day gain of calendar year 2026, providing support to the broader market.
The session also produced a second consecutive higher high and higher low on the daily chart, pointing to improving near-term momentum. Higher trading volumes than the previous session and stronger weekly volumes added support to the move. Market breadth also remained positive.
Nifty Regains 100-DMA After Nearly Five Months
The benchmark closed near a two-month high and moved back above its 100-DMA for the first time since mid-February. It is now trading close to the upper boundary of the range between 23,784 and 24,262 that has been in place since mid-June.
However, falling open interest warrants attention as it indicates that the rally may have been driven partly by short covering rather than fresh long positions.
Resistance Zone Holds the Key for Friday
Sustaining above the 24,250-24,265 zone will be important if the index is to extend its gains. Failure to remain above that level could keep the benchmark within its recent trading range.
The Bollinger Bands have begun to widen, signalling the early stages of an uptrend. The index is trading 1.16% above its 50-DMA, while the 14-period Relative Strength Index (RSI) is close to moving above 60. The MACD histogram also indicates improving upward momentum.
If the Nifty sustains above 24,250-24,265, the next resistance levels are placed at 24,462 and 24,854. A move above those levels could confirm a stronger uptrend. On the downside, the 50-DMA continues to provide support, with the broader positive bias remaining intact as long as the index holds above the 23,784-23,828 zone. For short-term positions, the previous session's low can be used as a stop-loss.
Stock In Focus: Anant Raj
Anant Raj corrected nearly 15% between its June 5 high and June 10 low before recovering about 38.2% of the decline. The stock subsequently revisited levels near its June 10 low, forming a double-bottom pattern.
On July 2, the stock formed a bullish candle after opening at the day's low and closing near the top of its trading range. The move was accompanied by higher volumes, while the stock also reclaimed its 20-DMA, improving its short-term technical setup.
Holding above the Rs 542-548 zone will be important for the stock. If it sustains above this range, it could move towards Rs 570-598. A stop-loss can be maintained at Rs 509.
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