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Stock market recap: The Indian stock market ended with healthy gains on Thursday, 9 October, on buying activity across sectors ahead of the start of the September quarter earnings season. IT heavyweight TCS kicked off the earnings season with its Q2 results.

The Sensex ended 398 points, or 0.49%, higher at 82,172.10, while the Nifty 50 settled with a gain of 136 points, or 0.54%, at 25,181.80. The BSE Midcap and Smallcap indices ended with gains of 0.75% and 0.18%, respectively.

Investors earned more than ₹2 trillion in a single session as the cumulative market capitalization of BSE-listed firms rose to over ₹460 trillion from about ₹458 trillion in the previous session.

Indian equities extended gains on Wednesday, with Nifty 50 rising 0.54% to close at 25,181.80, adding 135.65 points, while Sensex advanced in tandem, supported by firm global cues and strong buying in IT and Pharma stocks. The index traded in a narrow range between 25,024 and 25,199, consolidating above 25,000 for the third consecutive session.

Sectorally, Nifty IT outperformed, climbing 1.12% amid renewed optimism in global tech, followed by Nifty Metal (+2.17%) and Pharma (+1.05%). FMCG, Healthcare, and Financial Services also posted moderate gains, reflecting broad-based buying. The market breadth remained slightly positive with 1,600 stocks advancing versus 1,492 declining, indicating a balanced sentiment.

From a technical perspective, the index appears to be entering a phase of short-term stabilization following its recent corrective decline. The index’s successful reclaiming of the 100-DMA marks an encouraging shift in momentum, signalling a revival of buying interest near key support zones. The 14-period RSI has rebounded from oversold levels, suggesting that the intensity of selling pressure is easing and that a short-term base may be forming.

Moreover, Nifty’s decisive move above its downward-sloping trendline confirms a potential trend reversal, indicating that bearish momentum is losing strength. Importantly, the MACD is approaching a bullish crossover, which, if confirmed, could further validate the emerging recovery setup.

According to O'Neil’s methodology of market direction, the market status has been downgraded to an "Uptrend Under Pressure" as Nifty breached its "50-DMA" and the "distribution day count" is at one.

Nifty 50 extended its gains, maintaining its bullish momentum. Immediate resistance is seen at 25,200, followed by a key hurdle near 25,500. A decisive breakout and sustained close above this zone could accelerate the uptrend, potentially driving the index toward 25,650–25,700. On the downside, 24,900–24,800 remains a strong support area, where buying interest is likely to re-emerge on short-term dips. Overall, the broader trend continues to favour the bulls.

Bank Nifty opened on a muted note. However, after hitting its intraday low, it witnessed strong buying interest that lifted the index into positive territory. It formed a bullish candle and moved higher by 174 points (+0.31%) on an intraday basis. The index opened at 55,979, touched an intraday high of 56,286.25 and a low of 55,843.90, before settling at 56,192.05.

Buying interest was prominent in Kotak Mahindra Bank (up 1.06%), IndusInd Bank (up 1.16%), Federal Bank (up 2.27%), and IDFC First Bank (up 1.79%), which emerged as the top gainers of the day. The strength in these key constituents helped the index maintain its bullish momentum, reflecting sustained optimism within the banking space.

Bank Nifty’s momentum indicator, RSI, inched slightly higher, hovering near 63, while the MACD continued to trade above the signal line with a positive crossover—signifying a prevailing bullish undertone. Although short-term sentiment remains constructive, the broader structure still awaits a clear breakout confirmation. Traders are advised to remain selective and cautious, refraining from aggressive positions until a decisive trend becomes evident.

The index managed to close near its day’s high and continues to trade above all its key moving averages, reinforcing the prevailing optimism in the sector. If the positive sentiment persists, the index could move toward its previous high near 57,628, indicating an upside potential of around 2.5% from current levels. However, some profit-booking at higher zones cannot be ruled out following the recent rally. On the downside, immediate support is placed near 55,200, followed by 55,000, which are likely to act as crucial reference points for short-term trend stability and potential buying zones on any pullbacks.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, founded by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

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Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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