Indian equity benchmarks, the Sensex and Nifty 50, closed higher for the second consecutive session, buoyed by gains in IT, consumer durables, and commodity stocks, amid a largely positive trend in global markets. While optimism surrounding artificial intelligence (AI) spending in the US provided a lift to IT stocks, concerns about earnings moderation and potential US tariffs limited the upside.
In volatile trade, the S&P BSE Sensex gained 115.39 points (0.15%) to close at 76,520.38. The index opened lower, dropping 202 points to an intraday low of 76,202.12, but recovered later, climbing 338.55 points (0.44%) to hit a high of 76,743.54. Similarly, the Nifty 50 rose by 50 points (0.22%) to end at 23,205.35.
The IT sector was the standout performer, rising 1.8%, driven by a surge in optimism following US President Donald Trump’s announcement of a large-scale AI infrastructure project. The IT index has gained 4% over the past two sessions, as the sector earns a significant portion of its revenue from the US. Additionally, consumer durables and commoditystocks contributed to the positive sentiment.
Small- and mid-cap stocks also rebounded, with the small-cap index up by 1.1% and mid-caps rising 1.9%, recovering from recent losses. The total market capitalization of BSE-listed companies rose by ₹2.75 lakh crore, reaching ₹4.25 lakh crore.
Outlook for Nifty 50 and Bank Nifty
Looking ahead, analysts suggest that the Nifty 50 needs to decisively breach the 23,350 and 23,500 levels to establish confidence for a continued upward movement. Volatility is expected to remain high, so selective stock picks during intraday sessions are recommended. The support for Nifty is seen at 23,000, while resistance is at 23,400.
For Bank Nifty, the key resistance level is at 49,700, and a breakout above this level would indicate a strong directional move. The daily range for Bank Nifty is expected to be between 48,200 and 49,200.
Stock Recommendations for Today
- PCBL Chemical Ltd
Buy at ₹378
Target Price: ₹405
Stop Loss: ₹363 - Coal India
Buy at ₹386
Target Price: ₹400
Stop Loss: ₹375 - GNFC
Buy at ₹562
Target Price: ₹575
Stop Loss: ₹550
As the markets continue to show positive movement, traders are advised to focus on stocks with strong technical patterns and potential for further upside.
