The Sensex gained around 10 points to trade at 77,480 and the Nifty 50 gained 11 points to hover around 24,220 as of 9:50 AM on Thursday, as Indian equities opened marginally higher ahead of expiry-day volatility. The benchmarks showed mixed performance with the Nifty 50 trading above 24,200 after recovering from Tuesday's decline, while the Sensex maintained its upward momentum despite muted gains. The India VIX rose 3% to 10.84, indicating elevated volatility expectations ahead of the August F&O series expiry scheduled for Wednesday. The broader market outperformed the frontline indices, with the BSE 150 MidCap Index gaining 0.46% and the BSE 250 SmallCap Index rising 0.49%. According to The Economic Times, the market breadth remained slightly negative with NSE seeing 1,495 declines against 1,489 advances, while 100 stocks remained unchanged. Market experts now suggest that Nifty is likely to remain volatile and range-bound in the near term as the index continues to face resistance around the 24,300-24,400 zone, with immediate support seen at 24,150-24,200 levels. As per HST Wealth, Nifty's inability to sustain gains above the 24,300-24,400 resistance zone indicates that supply continues to emerge at higher levels, even as market participation improves with banking stocks reasserting leadership and mid-cap indices climbing to fresh record highs.
The Nifty PSU Bank index surged 1.21% to 8,707.35, marking a significant turnaround from previous sessions. As per Business Standard, the index jumped 1.95% in the two consecutive trading sessions, indicating strong institutional demand for public sector banking stocks. Bank of Maharashtra led the gains with a 4.15% surge, followed by Bank of India (up 1.9%), Indian Bank (up 1.79%), Union Bank of India (up 1.51%), Punjab National Bank (up 1.32%), Bank of Baroda (up 1.27%), Punjab & Sind Bank (up 1.16%), Canara Bank (up 1.1%), State Bank of India (up 0.97%) and Central Bank of India (up 0.94%). This rally comes after the Nifty PSU Bank index had declined around 1% in the previous session, marking a significant shift in investor sentiment toward public sector banking stocks. Bank Nifty witnessed buying interest during the initial minutes of trade but failed to sustain the upward momentum as profit booking emerged at higher levels, forming a bullish candle with an upper shadow on the daily chart, reflecting selling pressure at higher levels. According to SBI Securities, Bank Nifty continues to trade within a range, and a decisive move on either side will provide the next directional cue, with 57,300-57,200 acting as immediate support and 58,100-58,200 as immediate hurdle, while a sustained move above 58,200 could trigger a fresh rally towards 58,600 levels.
Consumer durables led sectoral gains with Nifty Consumer Durables rising over half a percent, while Nifty FMCG dropped 0.25% amid mixed market breadth. Among individual stocks, Kotak Mahindra Bank shares rose more than 2% to lead gains on Sensex, followed by Bharat Electronics, Tech Mahindra, ICICI Bank, Bajaj Finance and Axis Bank shares gaining around 1% each. However, HCL Technologies, HDFC Bank, NTPC, Hindustan Unilever, Power Grid and IndiGo shares dropped around 1% each, bucking the broader market trend. MTAR Technologies added 1.10% after the company announced securing orders worth ₹126.7 crore for the supply of coolant channel assemblies for the refurbishment of the RAPS-4 and MAPS-2 reactors. Max Estates gained 2.01% after the company announced that its board will meet on Friday, 28 August 2026, to consider the issue of equity shares through a preferential issue. According to The Economic Times, JSW Steel, Hindalco and Tata Steel emerged as the top gainers on the Nifty, with Hindustan Zinc (up 1.60%), Infosys (up 1.45%), HCL Tech (up 1.34%), Wipro (up 1.28%) and Tata Steel (up 1.26%) also featuring among the top gainers.
From a technical perspective, the Nifty remains trapped between key moving averages, with the index consolidating between the 20-EMA (Yellow line) and 50-EMA (Blue line) over the last couple of sessions. As per Dalal Street Journal, the 50-EMA, placed around 24,192, remains an important support level, while the immediate resistance is seen near 24,292. According to Bajaj Broking Research, the Nifty formed a bearish candle with shadows on both sides, indicating consolidation and the index remained below last week's high of 24,360. Recent market analysis has similarly highlighted 24,200-24,150 as immediate support, with 24,000 emerging as a stronger support level. The 24,300-24,400 resistance zone continues to pose challenges, with immediate support identified at 24,150-24,200 levels and stronger support at 24,000. For the immediate trading session, 24,130 is an important level to watch on the downside, with a move above this zone potentially opening the way towards 24,280 and then 24,360 levels. As per Geojit Investments, though momentum eased away yesterday after Nifty's initial rise, the downside marker remained intact, retaining hopes for resumption of upswing aiming 24,400 or 24,550 today. However, the analyst believes that Nifty's inability to float above 24,220 could call for 24,060, though a vertical drop is less expected.
With the August F&O series expiry scheduled on Wednesday, volatility is likely to remain elevated. According to Bajaj Broking Research, volatility is likely to be high in tomorrow session on account of the monthly F&O expiry. The dichotomous nature of the market trend - the midcap index at record highs while the Nifty is languishing about 8% below its peak - is likely to persist in the near-term since money flows and momentum support this SMIDs rally, according to market experts. However, this divergence is unsustainable beyond a point since valuations in SMIDs is getting stretched, as noted by The Economic Times. For the immediate trading session, 24,130 is an important level to watch on the downside. If the Nifty sustains above this zone, a move towards 24,280 and then 24,360 could be possible, while a decisive move above 24,360 could strengthen the recovery and open the way towards 24,600 in the coming weeks. European shares traded higher on Monday, lingering near three-week lows as dramatic escalation in U.S.-Iran economic threats kept risk appetite firmly in check despite a brief pullback in crude oil prices. Market participation has been improving, with banking stocks regaining leadership and mid-cap indices scaling fresh record highs, though the overall market sentiment remains choppy with the Nifty yet to establish a clear directional trend.
