However, unlike Wednesday, when the bounce could be attributed to plainly technical factors, there were enough and more positive triggers for the market to move higher. The technical factors were surely at play, but add to that the liquidity infusion announcement by the RBI, hopes of potential relief on the tariff front, a cooling US Dollar, crude oil prices falling to a six-month low, all of them contributed to the move upwards.
Finally, the index heavyweights stepped up as well, particularly Reliance Industries, after a prolonged period of underperformance. The stock was upgraded by Kotak Institutional Equities and Jefferies also saw a 36% potential upside. All of that made sure the stock was the top contributor to the Nifty gains and also ended at the day’s high.
On the other hand, while a cooling Dollar continued the rally in metal stocks, falling oil prices spurred strong moves in stocks like Chennai Petro, MRPL and the state-run Oil Marketing Companies – HPCL, BPCL and IOC. In fact, the Metal index is already up 8% this week, positioning itself for its best weekly upmove in four years.
Overnight developments tonight will also be key as the US comes out with initial jobless claims, data on its trade deficit and clarity on the tariff front will always be on the radar. Add to that is the interest rate decision by the European Central Bank. A follow-up buying session on Wall Street will also keep sentiments intact for the final trading session of the week.
The bigger question is, when do the bears step in? Have they exhausted their selling strength? or are they waiting for prices to move further higher before they jump back in to short the index at higher levels? The bulls would definitely want the Nifty to end the week on a high.
For the week so far, the Nifty is up 1.8%, while the Midcap index is up 2.8%. The Smallcap index, which has been hurt the most in the recent market fall, is up 4.5% for the week and has nearly recovered all that it lost in the previous week.
Nagaraj Shetti of HDFC Securities believes that the recent market action signals increasing strength of upside momentum in the market. Hence, the next levels to watch on the upside will be 22,750 – 22,800 levels. Immediate support is at 22,250.
While the near-term momentum appears favourable, the Nifty faces multiple resistance levels ahead, said Rajesh Bhosale of Angel One. Traders should approach these levels one step at a time. Immediate resistance of the bearish gap is at 22,700 on the weekly chart, which also aligns with the 20-DEMA. Beyond that, 22,800, which was a strong support, can be a resistance.
LKP Securities’ Rupak De said that the Nifty has filled the recent gap on the daily chart and the RSI is also recovering from historical lows and is currently in a bullish crossover. Sentiment appears to favour the bulls in the short-term. He expects the index to move towards 23,750 – 23,800. Sentiment will remain strong till the Nifty is above 22,300.
The Nifty Bank is slowly continuing to grind higher but remained an underperformer compared to the Nifty. The index also closed above the 48,500 mark. The 48,900 – 49,000 zone remains that of congestion for the index. The index has now gained for the third day in a row but remains an underperformer in comparison the Nifty. For the week, the index is up only 0.5%.
The Nifty Bank has a strong resistance at the 48,660 level, said Hrishikesh Yedve of Asit C Mehta Investment Interrmediates. Only a sustained move above that level can take the index to 49,000. On the downside, 47,840 remains a firm support.
What Are The F&O Cues Indicating?
Fresh long positions were seen in these stocks on Thursday, meaning an increase in both price and Open Interest:
| Stock | Price Change | OI Change |
| KPIT Tech | 2.20% | 22.18% |
| IIFL Finance | 3.15% | 20.17% |
| Nykaa | 2.00% | 17.46% |
| Jindal Stainless | 5.46% | 13.04% |
| Hindalco | 3.20% | 6.65% |
Fresh short positions were seen in these stocks on Thursday, meaning a decline in price but an increase in Open Interest:
| Stock | Price Change | OI Change |
| Trent | -1.44% | 10.83% |
| Coforge | -3.13% | 10.04% |
| BSE | -2.30% | 9.56% |
| Persistent Systems | -2.23% | 9.55% |
| Jubilant Foodworks | -1.94% | 8.13% |
Short covering was seen in these stocks on Thursday, meaning an increase in price but a decline in Open Interest:
| Stock | Price Change | OI Change |
| NALCO | 1.09% | -6.19% |
| Deepak Nitrite | 1.18% | -3.48% |
| Asian Paints | 4.50% | -1.93% |
| Adani Total Gas | 2.89% | -1.49% |
| Aarti Industries | 1.97% | -1.45% |
These are the stocks to watch out for ahead of Friday’s trading session:
- Bharat Electronics: Bags additional orders worth ₹577 crore since February 20, taking the total order inflow for financial year 2025 to ₹13,724 crore.
- Laurus Labs: To invest ₹833 crore in JV company KRKA Pharma. In addition, Slovenia-based KRKA d.d. Novo Mesto to invest another ₹867 crore in KRKA Pharma.
- Kalpataru Projects: Wins new orders worth ₹2,306 crore in T&D business in Overseas Market & Building projects in India. Total order intake in FY25 so far at around ₹22,500 crore.
- RVNL: Wins orders worth ₹156.35 crore from South Western Railway.
- RITES: Wins orders worth ₹27.96 crore from South Central Railway.
- Brigade Enterprises: Launches residential project Brigade Altius in Chennai with a revenue potential of ₹1,700 crore.
- Biocon: Biocon Biologics and Civica collaborate to expand Insulin Aspart access in the US market.
