After yesterday’s muted session, Nifty staged a strong comeback on the first day of the August series, surging 264 points to close at 24,250. The index opened 191 points higher and steadily extended gains through the day. From the recent swing low of 23,606 recorded on 24 July, Nifty has now recovered 677 points, marking its highest close in the last eight trading sessions.

Among Nifty constituents, Jio Financial Services, Hindustan Unilever, and Infosys led the advancers, while Adani Ports, Mahindra & Mahindra and Power Grid were the key laggards.

Sectoral performance was broadly positive. Except for Auto and Realty, all sectoral indices closed in the green. IT, Metal and FMCG posted the strongest gains.

Broader markets surged alongside the benchmarks. The Nifty Midcap 100 rose 0.82%, while the Nifty Smallcap 100 jumped 1.48%. Market breadth turned decisively positive, with the BSE advance–decline ratio climbing sharply to 1.56, signaling renewed buying interest in the midcap and smallcap space after a day of correction.

The Indian rupee appreciated for the fourth straight session, gaining 20 paise to close at 95.65, supported by strong regional currencies, a softer dollar index and the sharp rise in domestic equities.

The short-term trend has turned bullish as Nifty has reclaimed levels above its 20, 50 and 100 day EMAs. It has also broken out above the downward-sloping trendline connecting the recent swing highs of 24,530 and 24,367, indicating a clear shift from corrective to bullish momentum.

Going ahead, the previous swing high near 24,368, which also aligns closely with the 200-day EMA, will be the crucial resistance to watch. A sustained move above this zone could open the door for further upside. On the lower side, immediate support has now shifted higher to the 24,000–24,050 band, and as long as Nifty holds above this area, the short-term bias is likely to remain positive.

Nandish Shah – Deputy Vice President, HDFC Securities