- You missed the IT surge, and now the market is humming back to life.
- Key support zones at 25,500‑25,450 for Nifty 50 could shield against a pull‑back.
- Bank Nifty cracked the 60,000 mark, hinting at fresh record highs.
- U.S. tariff talks linger, but domestic consumption and institutional inflows remain strong.
- Eight intraday picks offer tactical entry points for aggressive traders.
You missed the IT surge, and now the market is humming back to life.
Why the Nifty 50’s Support Zone Matters for Your Portfolio
The Nifty 50 has settled into a narrow corridor between 25,500 and 25,450. That range acts as a psychological floor; every dip has found buying at the lower edge, indicating that institutional investors are still defending the index. The 50‑day exponential moving average (EMA) sits just above 25,800, providing a clear resistance line. A decisive break above that EMA would likely trigger algorithmic buying, propelling the index toward the 26,000‑26,200 region.
Historically, when the Nifty respects a support band for three‑plus sessions, the next leg often turns bullish. In early 2022, a similar 25,300‑25,500 zone preceded a 12% rally over six weeks. The current support, therefore, is not just a price level—it’s a signal that the broader market sentiment remains intact despite global headwinds.
How IT Earnings Surprises Are Reshaping the Indian Tech Landscape
Heavyweights such as HCL Technologies, LTIMindtree, and Infosys posted earnings that beat consensus by 5‑10%, driven by higher‑margin digital services and stronger export contracts. The earnings beat erased much of the fear surrounding possible secondary U.S. duties on tech components tied to Russia and Iran.
Sector‑wide, the IT index outperformed the broader market by 1.8% on the day, lifting the Nifty 50. The surge also narrowed the valuation gap between Indian IT firms and their global peers, making the sector attractive for foreign portfolio inflows. For comparison, the 2020 post‑COVID rebound saw IT stocks lead a 7% market rally after a series of profit warnings; today’s rally is cleaner, anchored in actual profit growth.
Bank Nifty’s Record‑High Momentum: What It Means for Financial Stocks
Bank Nifty broke the psychological 60,000 barrier and now trades comfortably above its 21‑day simple moving average (21‑DMA) near 59,480. The index’s short‑term support at 59,200‑59,190 is tight, but the overall technical structure remains constructive. The next upside target sits at 60,500, a level that aligns with the 50‑day EMA and past resistance.
Major lenders—HDFC Bank, ICICI Bank, and Axis Bank—have all posted stronger‑than‑expected Q3 results, reinforcing the sector’s earnings momentum. Compared with the 2018 banking rally, where a similar breakout was followed by a 15% rally in banking stocks, the current environment appears even more favorable because domestic credit growth is outpacing inflation, and the RBI’s policy stance remains accommodative.
Global Trade Tensions: Tariff Risks and the Hidden Upside
The U.S. is still weighing secondary duties on products linked to Russia and Iran. While the threat looms, the impact on Indian exporters has been muted so far. Export‑oriented sectors such as pharmaceuticals, textiles, and gems remain cautious, but the domestic consumption engine continues to expand, buoyed by steady services growth and a widening middle class.
Interestingly, the tariff debate may accelerate India’s push for a free‑trade agreement (FTA) with the European Union. If the FTA materialises, sectors like automotive, solar equipment, and leather could benefit from reduced duties, adding a longer‑term catalyst for equity upside.
Technical Patterns Explained: EMA, DMA, and Support Zones
Exponential Moving Average (EMA) places greater weight on recent prices, making it more responsive to short‑term trends than a simple moving average. Traders watch the 50‑day EMA as a dynamic resistance line; a break above it often signals a shift from consolidation to a new uptrend.
Simple Moving Average (DMA) calculates the arithmetic mean of closing prices over a set period. The 21‑day DMA is popular among swing traders because it captures medium‑term momentum. When price stays above the 21‑DMA, it suggests that buying pressure outweighs selling pressure.
Support Zones are price areas where demand historically outweighs supply, causing a floor for price declines. In the Nifty 50 case, the 25,500‑25,450 band has acted as a magnet for institutional buying, reinforcing its credibility.
Investor Playbook: Bull vs. Bear Cases
Bull Case: Continued IT earnings beat, Bank Nifty’s march past 60,500, and a clean break above the Nifty 50’s 50‑day EMA would trigger a wave of algorithmic and foreign inflows. Combined with a potential EU‑India FTA, the market could target the 27,000‑27,500 range within the next six weeks.
Bear Case: A sudden escalation in U.S. tariff measures or a sharp FII outflow could test the Nifty’s support band. If the index falls below 25,200, the next major support lies near 24,800, and a breach could open a correction of 6‑8%.
For active traders, eight intraday setups are worth watching: AU Small Finance Bank, LTIMindtree, IEX, Cholamandalam Investment and Finance, Bharti Airtel, HCL Technologies, Coforge, and Mishra Dhatu. Each trade features a clear entry, target, and stop‑loss, aligning with the technical themes outlined above.