Market Analysis from HDFC Securities

Nifty Hits 4-Week High on Broad Market Surge

 After two sessions of profit-booking, the Nifty 50 resumed its uptrend by soaring 178 points (0.71%) to close at 25,323. Post higher opening on the back of strong global cues, Nifty continued its upward journey throughout the day, closing at its highest level since September 18, 2025.NSE cash market turnover was lower by 8% compared to yesterday.

Among the Nifty constituents, Bajaj Finance, Nestle, and Bajaj FinServ ended as the major gainers. Conversely, Infy, Bajaj Auto, and Tata Motors finished the session as the major losers.

Buying was broad-based, marking a complete reversal of the previous day’s selling concentration. Except for Nifty Media, all sectoral indices closed in the green. Leadership was prominent in sectors like Realty, PSU Banks, and Metal, which ended with the highest gains.

The Indian Rupee surged 72 paise against the greenback, its highest closing in a month. the largest percentage gain since late June to close at 88.08 levels, highest in a month. This significant appreciation, the largest percentage gain since late June was primarily fueled by central bank intervention, a softer dollar index, lower crude oil prices, and the strong rally in local equity markets.

Both the Nifty Midcap 100 and Smallcap 100 indices rallied along with the Benchmark Indices. Market breadth also turned decisively positive, reflected in a BSE advance-decline ratio of 1.53. Importantly, the broad market demonstrated resilience by holding above the previous session’s low, thereby negating the bearish “Engulfing” pattern and signaling that the recent correction was merely transient profit-taking.

After a brief pause, Nifty has resumed its upward trajectory and is now placed very close to the key resistance from the symmetrical triangle pattern at 25,400. A sustained move above 25,400 would constitute a significant technical breakout, likely pushing the index toward the next major resistance level of 25,669. On the downside, support for the Nifty has shifted higher to the 25,150 level.