Closing bell: Sensex surges 700 points, Nifty ends at 25,245; small-cap stocks extend rally for 4th session

The Indian share market extended its gaining streak for the second consecutive session on Wednesday, driven by broad-based buying across sectors, led by IT, auto, and FMCG. The market sentiment was boosted by cooling crude oil prices and firm global cues following an ease in geopolitical tensions. India VIX, the index used to gauge market volatility, dropped 4.9% to 12.97 points, signalling calmness in the market following the ceasefire between Israel and Iran.

The BSE Sensex closed at 82,755.51, up 700.4 points or 0.85%, and the NSE Nifty50 ended at 25,244.75, up 200.40 points, or 0.8%. In the broader markets, the Nifty MidCap index settled 0.44% higher, while the Nifty SmallCap index rallied 1.5%. With this, small-cap stocks extended their uptrend for the fourth consecutive session.

“Investor confidence was bolstered by a tentative ceasefire between Israel and Iran, which eased concerns over Middle East tensions and contributed to a drop in crude oil prices,” said Vaibhav Vidwani, Research Analyst at Bonanza.

Among the BSE Sensex pack, 27 of the 30 stocks ended higher, the outliers being BEL , Kotak Mahindra Bank and Axis Bank . The Top 5 gainers on the Sensex were Titan Company , Infosys , M&M , Bharti Airtel , and TCS , rising in the range of 3.6-1.7%. On the other hand, BEL, Kotak Mahindra Bank and Axis Bank shares declined between 0.7% to 3.06%.

 "While FIIs continue to withdraw capital, positive global cues are helping sustain domestic market momentum. Large-cap stocks, especially in IT and auto, are outperforming, aided by a strong dollar and improved risk appetite,” said Vinod Nair, Head of Research, Geojit Investments.

Domestically, a favourable monsoon forecast, and moderating inflation are further underpinning the optimism. Although the prospect of new U.S. tariffs presents a potential headwind, near-term market sentiment remains broadly positive, he added.

Breakout above 25,300 could take Nifty to 25,750

The ceasefire following the conflict between Israel and Iran has boosted confidence among bullish traders, who are now aiming to take the Nifty towards 25,750, said Rupak De, Senior Technical Analyst at LKP Securities. A breakout above this level could extend the rally towards 25,750, he said, adding that the 24,820–25,000 zone is likely to continue acting as a crucial support.

Technically, after a gap-up opening, the market held its positive momentum throughout the day. A bullish candle on daily charts and an uptrend continuation formation on intraday charts indicate a further uptrend from the current levels, said Shrikant Chouhan, Head-Equity Research, Kotak Securities.

For trend-following traders, 25,000 and 82,000 and 25,100 and 82,300 would act as key support zones for the Nifty and the Sensex, respectively. As long as the market is trading above these levels, the bullish sentiment is likely to continue, he said.

On the higher side, 25,300/83,000 would act as an immediate resistance zone for day traders. A successful breakout of 25,300/83,000 could push the market towards 25,450-25,500/83,500-83,650. However, below 25,000/82,000, the uptrend would become vulnerable, Chouhan added.

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