The Indian stock markets continued their winning streak for the third consecutive session on Tuesday, with the Sensex and Nifty posting robust gains and breaking through critical resistance levels. The Sensex closed 597.67 points higher at 80,845.75, while the Nifty 50 rose 181.10 points to settle at 24,457.15, marking a 0.74 per cent and 0.75 per cent increase respectively.

The sector-specific performance showed mixed trends, with PSU Banks and Media indices rallying over 2 per cent, while FMCG and Pharma stocks experienced intraday profit booking. Adani Ports led the top gainers, surging 5.86 per cent, followed by NTPC (2.65 per cent), Adani Enterprises (2.20 per cent), Axis Bank (2.10 per cent), and SBI (2.04 per cent). Conversely, Bharti Airtel (-1.50 per cent), Hero Motocorp (-1.10 per cent), ITC (-0.97 per cent), HDFC Life (-0.81 per cent), and Sun Pharma (-0.39 per cent) were among the notable losers.

Market breadth remained strong, with 2,739 advances against 1,220 declines on the BSE. A total of 251 stocks hit 52-week highs, while only 13 touched 52-week lows. The day also saw 458 stocks in the upper circuit and 178 in the lower circuit.

Vinod Nair, Head of Research at Geojit Financial Services, noted the market’s resilience: “Benchmark indices continued to demonstrate resilience amidst positive global sentiment. Investors are now focusing on potential growth drivers, assuming that weak economic data has already been reflected in the recent lacklustre corporate earnings.”

Technical analysts provided an optimistic outlook. Nagaraj Shetti from HDFC Securities highlighted the market’s potential: “The recent swing low is expected to be a new higher bottom. This market action is indicating that the bullish chart pattern like higher tops and bottoms is likely to unfold from here and that could possibly result in more upsides for the market ahead.”

The market received additional support from global cues, with Asian markets rising and tracking gains in the US. The India VIX, a measure of market volatility, dropped 2.23 per cent to 14.37, signalling reduced market uncertainty.

Deepak Jasani from HDFC Securities emphasized the market’s technical strength: “Nifty is now on the verge of breaking above the crucial hurdle of 24,450-24,500 levels, which were previous swing highs. In the process, it has formed a bullish Higher top Higher bottom formation and is in the process of forming a bullish inverted H&S pattern.”

Sectoral performance was notably positive, with the Nifty Bank index rising 1.13 per cent to 52,695.75 and the Nifty Financial Services index gaining 0.93 per cent to 24,296.55. The broader markets also showed strength, with midcap and smallcap indices rising by approximately 1 per cent each.

Market participants are now paying  attention to the upcoming RBI monetary policy and US non-farm payroll data. Mandar Bhojane from Choice Broking suggested a potential upward trajectory: “A close above the 24,500 level could propel the index further to 24,800 and 25,000 in the coming sessions.”

The day’s trading session demonstrated the market’s underlying bullish sentiment, with multiple analysts suggesting a “buy on dips” strategy and pointing to potential further upside in the near term.

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