Markets extended their gains for the third consecutive session on Tuesday, supported by favourable global cues and sustained buying in select heavyweight counters. After a positive start, the Nifty traded within a narrow range during the first half and gradually inched higher as the session progressed. However, resistance near the 24,000 mark capped the upside, and the index eventually settled at 23,989.15, up 0.57%.

Sectoral participation remained mixed, with realty, IT, and FMCG emerging as the top gainers, while metals remained under pressure amid weakness in global commodity prices. Broader markets also traded with a positive bias, with both midcap and smallcap indices posting modest gains, indicating improving participation beyond frontline stocks.

The positive undertone was primarily driven by optimism surrounding the preliminary US-Iran peace agreement, which continued to ease concerns over disruptions to global energy supplies. Brent crude prices edged lower towards the $81 per barrel mark, providing relief from inflationary pressures and supporting sentiment in oil-sensitive sectors. However, investors continued to monitor developments related to the formalisation of the peace agreement and trends in global markets.

Technically, the Nifty continued to build on its recent breakout, although the pace of the advance remains gradual. We maintain our view that the index could potentially retest the 24,200–24,500 zone in the near term, while the 23,650–23,800 region is likely to act as an important support area. With participation broadening across sectors, we recommend favouring relative outperformers while also booking profits on rallies until there is clearer confirmation of a sustained trend reversal.

Ajit Mishra – SVP – Research, Religare Broking