Indian equities could see a positive start on Tuesday after benchmark indices ended higher in the previous session, supported by strong buying in information technology and pharmaceutical stocks amid easing concerns over crude oil prices.
The BSE Sensex rose 291.17 points, or 0.38%, to close at 77,094.07 on Monday, while the NSE Nifty50 gained 90 points, or 0.37%, to settle at 24,102.90.
Investor sentiment improved as a pullback in global crude oil prices eased worries about inflationary pressures and India's import bill, while gains in export-oriented IT stocks reflected optimism over global demand and currency trends.
Market participants will now closely watch whether the Nifty can sustain momentum above the psychologically important 24,100 level and challenge the immediate resistance zone around 24,200.
Technical analysts said a decisive move above 24,200 could strengthen bullish sentiment and open the door for a rally toward 24,400 in the near term.
"A sustained breakout above this level would reinforce bullish momentum and could pave the way for a further advance towards the 24,400 region, which remains the next significant upside target," an analyst said.
The broader market tone remains constructive, supported by improving risk appetite, resilient domestic inflows and expectations that easing commodity prices could support corporate earnings across sectors.
However, traders are likely to remain cautious amid global geopolitical developments and fluctuations in energy markets, which continue to influence risk sentiment.
On the downside, analysts see the 24,000-23,900 zone as a key support area for the benchmark index.
"On the downside, the 24,000–23,900 region continues to serve as a crucial support zone," the analyst added.
A hold above this support band is expected to keep the near-term uptrend intact, with investors looking for fresh triggers from global markets, commodity prices and upcoming domestic economic data.
Market participants remained encouraged by the continued decline in global oil prices, which helped improve sentiment across sectors. The gains on Monday were largely driven by IT and healthcare-related stocks, which witnessed sustained buying throughout the trading session.
Among the top performers yesterday in theNifty index were Cipla, Infosys, Tech Mahindra and Dr. Reddy's Laboratories. Strong gains in these stocks helped offset weakness in select consumer-oriented sectors.
The broader market also ended on a firm note. The Nifty MidCap index advanced 0.34 per cent, while the Nifty SmallCap index climbed 0.6 per cent, indicating continued investor interest beyond frontline stocks.
Sectoral indices presented a mixed picture. The Nifty IT, Nifty Pharma and Nifty Healthcare indices emerged as the biggest gainers, benefiting from sector-specific buying and positive sentiment. On the other hand, the Nifty FMCG and Nifty Consumer Durables indices ended lower, making them the worst-performing sectors of the day.
Analysts said that softer crude prices and selective buying in defensive and technology stocks supported the market, while investors remained cautious ahead of key domestic and global economic developments.
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