Indian markets surged on Tuesday with Sensex jumping 777.18 points (1.02%) to close at 76,977.86 and Nifty 50 gaining 190.65 points (0.80%) to end at 24,014.75, marking gains of up to 1% amid improved investor sentiment. As per Geojit Investments, the rally was driven by RBI Governor Sanjay Malhotra signalling that talks around further rate hikes may be premature, alongside a rebound in South Korean equities and supportive global cues. India VIX dropped over 4% to 13.34, indicating reduced market volatility, while the sharp gains added around ₹1.3 lakh crore to the total market capitalisation of all BSE-listed companies, pulling it up to ₹476 lakh crore. Large caps outperformed the broader market through the session, led by gains in IT and banking stocks. Market breadth remained healthy with 2,400 stocks advancing against 2,225 declining out of 4,625 total scrips traded, reflecting an advance-decline ratio of 1.08.
The Printing & Stationery sector emerged as the standout performer with an impressive 8.21% average gain, followed by Services sector which posted a solid 2.26% advance. However, Oil & Gas sector faced the maximum pressure with a 3.73% average decline, while Engineering Services also witnessed significant selling pressure with a 2.90% drop. According to Geojit Investments, IT stocks gained on reinforcing commentary that Indian vendors remain indispensable implementation partners for enterprise-wide mid- and back-office AI adoption. The clarity in the FCNR(B) deposit swap scheme provided momentum to banking stocks, while stock-specific action was seen in banking, IT, infrastructure and midcap counters across NSE trading data. Growing expectations of an imminent India–US trade deal also supported the market rally, alongside a sharp drop in crude prices following improved traffic at the Strait of Hormuz.
According to Jatin Gedia of Teji Mandi, the Nifty held the 23,850–23,800 support zone and witnessed a smart rally throughout the day, reversing most of the previous trading session's losses. The index formed a bullish piercing line candlestick pattern indicating aggressive buying, with drops toward support levels being bought despite weak global cues. The momentum indicator RSI sustaining above the 50 level keeps the bullish sentiment intact, with expectations of the upmove continuing towards the 24,400 - 24,450 zone which coincides with the 200-day moving average and previous swing high. Going ahead, the immediate resistance for Nifty is placed in the 24,140-24,170 zone, which coincides with the 100-day EMA, as per domestic brokerage analysis. Any sustainable move above this zone could result in Nifty extending its pullback towards 24,300, followed by 24,450 in the short term. On the downside, immediate support for Nifty is placed in the 23,900-23,870 zone.
The Bank Nifty led from the front with gains of 1.72% (~1000 points) driven by heavyweights including HDFC BANK, ICIC BANK, AXIS Bank and SBIN. As reported by Teji Mandi, it formed an Outside Bar pattern on daily charts, setting firm support at the 57,100 - 57,000 zone from a short-term perspective. The options chain shows Bank Nifty closed above the 58,000 mark with significant Call Open Interest concentration, coupled with a 21% rise in June futures open interest, implying a call writer trap. The next significant open interest concentration is at the 60,000 strike, suggesting the next resistance is more than 900 points away. Bond yields also sharply declined, supported by fresh capital inflows following the recent debt market policy reforms, providing additional momentum to banking stocks.
AU Bank is recommended with a current market price of ₹1,067.20, stop loss at ₹1,040, and target of ₹1,125. According to Teji Mandi, the stock witnessed a price volume breakout after seven-day consolidation, with a rising ADX above 20 suggesting strong trend strength. Ramco Cements is suggested at ₹913.75 with stop loss at ₹885 and target of ₹985, having seen a breakout from an ending diagonal pattern with positive MACD divergence. Exide Industries is recommended at ₹399.50 with stop loss at ₹389 and target of ₹430, having witnessed a Flag and Pole pattern breakout with high volume suggesting resumption of the next leg of the upmove.
