Sensex Closes Strong Amid Range-Bound Nifty as Global Investors Weigh Inflation Jitters Against Domestic Resilience

Sensex Closes Strong Amid Range-Bound Nifty as Global Investors Weigh Inflation Jitters Against Domestic Resilience​

The Indian stock market extended gains on Thursday, with the BSE Sensex closing robustly after US interest rate decisions were announced. The Sensex registered a gain of approximately 274 points to settle at 77,928. Concurrently, Nifty gained about 67 points, finishing the session at 24,317.

While major indices showed gains, the broader market sectors experienced volatility. Both the Nifty Midcap 100 and Nifty Smallcap 100 indices ended in the deep red, with declines up to 0.6%, indicating selective profit-taking across the market breadth.

Macroeconomic Headwinds and Investor Sentiment​

The US Federal Reserve's decision to maintain key interest rates was largely anticipated by investors. However, a degree of hawkishness persisted, as policymakers continued emphasizing inflation control in their statements. A sharp increase in US bond yields is signaling growing pressure for a potential rate hike in the near future.

This global uncertainty was further amplified by renewed volatility in crude oil prices amid ongoing West Asian tensions. As a result, domestic equities remained range-bound with sharp intraday swings as investors balanced these external headwinds against resilient fundamental strength within India.

Bulls and Bears: Market Movers Highlighted​

Amid the general market stability, certain stocks led significant movement. Among the key performers on Nifty were several stock that registered substantial gains in the session. Simultaneously, the Sensex saw specific breakouts driven by strong institutional interest.

On the downside, both indices recorded notable losses among their constituents. The trading day also highlighted severe sell-offs for a group of defensive stocks as market volatility intensified.

Technical Outlook and Analyst Viewpoint on Nifty​

The movement of Nifty remains technically range-bound, failing to deliver a clear directional move in the short term. However, Rupak De, Senior Technical Analyst at LKP Securities, noted that the index has successfully sustained itself above the critical 50 EMA on the daily timeframe.

The technical indicators remain positive, with the Relative Strength Index (RSI) exhibiting a bullish crossover and continuing to trend higher. This is further supported by a stable rising trendline. The analyst projects continued short-term positive sentiment for Nifty, pointing toward a potential move towards 24,500.

Key Support and Resistance Levels​

For immediate technical movement, the lower support level has been identified at 24,200 on Nifty. If the index falls below this critical mark, it could potentially lose its current momentum gained during the trading session. The market is currently operating within a zone that requires caution but also suggests underlying strength if key resistance levels are tested successfully.