Nifty, Sensex Rally on Earnings Boost: IT Stocks Lead as India Market Reclaims Key Technical Levels

Nifty, Sensex Rally on Earnings Boost: IT Stocks Lead as India Market Reclaims Key Technical Levels​

The Indian stock markets extended their recovery for the second consecutive session, driven by broad-based buying and strong performance from the Realty and banking sectors. Both the Sensex and Nifty saw gains of around 1 percent, solidifying the positive trend across the equity landscape on July 10.

The rallying momentum was supported globally, allowing benchmark indices to push higher throughout the trading session. The Nifty 50 touched an intraday high of 24,228.45, while fundamental strength was provided by sharp gains in realty and metal stocks.

Market Performance and Benchmark Gains​

At market close, the BSE Sensex closed at 77,569.39, recording a gain of 827.57 points or 1.08 percent. The Nifty finished strongly at 24,206.90, marking a rise of 244.10 points or 1.02 percent.

While the indices showed robust gains on July 10, both the Sensex and Nifty registered minor declines for the week, falling 0.2% each. The Indian rupee also saw slight strengthening, ending marginally higher at 95.32 per US dollar, down from the previous close of 95.38.

Sectoral Strength and Broader Market Surge​

Sectoral performance remained overwhelmingly positive, with all major indices closing in the green. The Nifty Realty index led the rally, surging 3.5 percent. The sentiment was further boosted by the Nifty PSU Bank index, which rallied a solid 3 percent.

The technology sector saw significant gains, with the Nifty IT index advancing 2 percent. This performance was partly attributed to Tata Consultancy Services (TCS) reporting better-than-expected Q1 FY27 results. The Metal and Bank indices also gained positively, registering 1.5 percent and 1.4 percent respectively.

The momentum wasn't confined to the benchmark. The broader markets significantly outperformed the indices, with the Nifty Midcap 100 rising 1.4 percent and the Nifty Smallcap 100 advancing 1.5 percent. Both of these segments managed to scale fresh record highs.

Stock Market Highlights and Corporate Earnings Boost​

Key individual stocks continued their upward trajectory. Jio Financial, HDFC Life, Adani Enterprises, SBI Life Insurance, and Reliance Industries were among the biggest gainers in the Nifty. Conversely, Dr Reddys Labs, Eternal, Bharti Airtel, Nestle, and Sun Pharma registered losses.

TCS specifically posted a strong showing after its earnings report. The company reported a 4.6 percent year-on-year rise in net profit for the June quarter, hitting Rs 13,349 crore. Revenue simultaneously increased by 13.9 percent to reach Rs 72,275 crore.

Other notable movements included Ion Exchange shares surging 17% following a major contract win of Rs 503 crore. Wheels India also climbed 4 percent after approving a board-level fund-raising proposal of Rs 400 crore. Among the companies that hit their 52-week high, there were Capri Global and JK Bank among others.

Technical Outlook and Key Support Levels (Analyst Consensus)​

Technical analysts suggest a firm bullish trend is reasserting itself in the market structure. Rupak De of LKP Securities noted that the index has moved back above the falling trendline, confirming a revival in the prevailing trend. The shift towards higher strike prices in Put writing also reinforces improving sentiment.

Sudeep Shah from SBI Securities pointed out that the Nifty successfully reclaimed its 100-day EMA and recovered much of the steep decline witnessed earlier in the week. He noted the index traded in a narrow range, forming a small body bullish candle, reflecting intraday indecision.

Looking ahead, Sudeep Shah places immediate resistance for Nifty in the 24350 to 24400 zone, with further targets at 24550 and 24700. Immediate support is set in the 24050 to 24000 zone. Abhinav Tiwari from Bonanza advised that while strong earnings and healthy domestic inflows provide support, geopolitical tensions and a sharp rise in crude oil prices remain primary risks for the market.