Indian equity markets traded in a narrow range on Tuesday, with the BSE Sensex hovering around 76,850 and the NSE Nifty 50 holding close to the 24,000 mark. After Monday’s sharp rebound, investors turned cautious ahead of the US Federal Reserve’s policy meeting and fresh corporate earnings. While IT stocks continued to attract buyers, weakness in FMCG and select large-cap stocks limited the market’s upside.

1. Investors Await the US Federal Reserve Meeting

The biggest reason behind today’s cautious trade is the upcoming US Federal Reserve policy decision. Markets widely expect the Fed to keep interest rates unchanged, but investors are closely watching its commentary for clues on future rate moves. This has encouraged traders to avoid aggressive positions before the outcome.

2. IT Stocks Continue to Support the Market

The IT sector remained one of the strongest performers today. Stocks such as Infosys, TCS, and Wipro gained after global brokerage firm Jefferies upgraded its view on the Indian IT sector. Investors also expect technology companies to benefit from improving demand and relatively lower exposure to capital-intensive AI spending compared with global peers.

3. Lower Crude Oil Prices Improve Sentiment

Crude oil prices continued to ease as hopes of a diplomatic breakthrough in the Middle East reduced supply concerns. Lower oil prices are positive for India because they help control inflation, reduce import costs, and improve corporate profitability. This provided support to sectors such as automobiles, paints, aviation, and FMCG, although the gains were limited by profit booking.

4. Weakness in FMCG Stocks Caps Gains

Despite strength in IT stocks, the broader market remained subdued due to selling in FMCG shares. Hindustan Unilever declined after reporting quarterly earnings that missed market expectations because of higher input costs. The fall in one of the index heavyweights prevented the benchmark indices from extending Monday’s rally.

5. Earnings Season Keeps Stock-Specific Action in Focus

Investors are shifting their focus to the June-quarter earnings season, leading to stock-specific movement rather than a broad market rally. Companies reporting strong earnings are witnessing buying interest, while those posting weaker numbers are facing selling pressure. This trend is likely to continue over the next few sessions as more companies announce their results.

Key Technical Analysis

Sensex Technical Outlook

The Sensex is trading in a consolidation phase after Monday’s strong recovery. The index is holding above the 76,600 support level, indicating that buyers are still active at lower levels. Immediate resistance is placed near 77,100–77,300, while support remains around 76,500. A move above the resistance zone could trigger fresh buying, while a break below support may invite short-term profit booking.

Nifty 50 Technical Outlook

The Nifty 50 is trading close to the psychological 24,000 level, showing signs of consolidation. Immediate support is placed near 23,900, while resistance is seen around 24,100–24,200. As long as the index remains above the 23,900 mark, the short-term outlook remains positive. A decisive breakout above 24,200 could open the door for further gains.

Bank Nifty Technical Outlook

Bank Nifty is trading with a slightly positive bias, supported by selective buying in private banking stocks. The index is holding above its immediate support zone near 56,900, while resistance is placed around 57,500–57,700. A sustained move above the resistance area could strengthen bullish momentum, while a fall below support may lead to a short-term correction.

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