- Indian equity benchmarks likely to remain positive after strong IT stock rebound
- Nifty 50 closed at 24,175, Sensex settled at 77,502 with broad-based buying
- Nifty support seen at 24,075; a breakout above 24,250 could extend gains
Indian equity benchmarks are likely to remain on a positive footing on Friday after ending the previous session near the day's high, with a sharp rebound in IT stocks boosting market sentiment. Analysts believe the Nifty 50 could attempt a breakout above the 24,250 mark if global cues remain supportive.
The benchmark indices extended gains on Thursday, aided by broad-based buying and renewed strength in information technology stocks. The Nifty 50 climbed 0.71% to close at 24,175, while the Sensex advanced 0.75% to settle at 77,502.
The rally came as IT stocks rebounded sharply, tracking strength in global technology shares after easing concerns over artificial intelligence-driven disruption to traditional software companies.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the market maintained its positive momentum after a gap-up opening and formed a bullish candlestick pattern on the daily chart.
He said 24,075 on the Nifty would act as immediate support levels for traders.
"Above these levels, the market could continue its positive momentum towards 24,250-24,375 on the Nifty. Conversely, below 24,075, sentiment could turn negative. In that case, the market could retest 23,980-23,900 on the Nifty," Chouhan added.
ALSO READ: PB Fintech Block Deal: MacRitchie Investments To Pare 2.6% Stake; Floor Price Fixed
Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services, expects Indian equities to continue their gradual upmove, supported by favourable global developments.
"Indian equity markets are likely to witness a gradual upmove on the back of positive global cues. Central banks in both India and the US remain focused on containing inflation, supporting overall market sentiment," he said.
Bank Nifty Outlook
While IT stocks dominated Thursday's rally, banking stocks largely remained range-bound. Jatin Gedia, Vice President, Technical Research at Teji Mandi Investment Technologies, said Bank Nifty is likely to consolidate in the near term.
"Bank Nifty took a backseat as the IT sector led the rally, contributing more than 50% to the upmove. The structure is still positive; however, consolidation is likely in the range of *57,500-58,500*."
Meanwhile, Bajaj Broking Research believes the recent consolidation should be viewed as an opportunity to accumulate banking stocks.
"The lows of the last two weeks are almost identical around the *57,000* mark, making it a crucial short-term support level. The overall bias remains positive; hence, the current breather should be used to accumulate quality banking stocks in a staggered manner for the next leg of the up move."
Market Recap
Benchmark indices extended gains for the second straight session, helped by a rebound in IT stocks after a four-day decline. The NSE Nifty 50 rose 0.71% to 24,175.70, while the BSE Sensex gained 0.75% to 77,502.12. The Nifty was up 169.85 points and the Sensex advanced 579.48 points.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.