Indian equity markets traded in a narrow range on Thursday, with the BSE Sensex closing near 77,200 and the NSE Nifty 50 holding above the 24,100 mark. While lower crude oil prices and easing geopolitical tensions supported sentiment, a hawkish stance from the US Federal Reserve are the key factors that capped gains. The market remained resilient, with strength in financials, midcaps, and select domestic-focused sectors offsetting weakness in IT stocks.

1. Hawkish US Federal Reserve Limits Upside

The biggest factor influencing today’s market action was the US Federal Reserve’s policy outlook. While the Fed kept rates unchanged, its projections indicated the possibility of another rate hike later this year. The hawkish commentary led to caution among global investors and prevented a stronger rally in emerging markets, including India.

2. Continued Decline in Crude Oil Prices

Crude oil prices continued their downward trajectory after the US-Iran interim peace agreement. Brent crude slipped toward the $76 per barrel mark, providing relief to oil-importing nations such as India. Lower energy costs are expected to ease inflationary pressures, improve the current account position, and support corporate profitability across multiple sectors.

3. Positive Impact of the US-Iran Peace Agreement

Investor sentiment remained supported by the recently signed interim peace agreement between the United States and Iran. The agreement has significantly reduced concerns regarding disruptions in the Strait of Hormuz and global oil supplies. Reduced geopolitical uncertainty has improved overall market confidence and encouraged investors to maintain exposure to equities.

4. Strength in Financial Stocks

Financial stocks remained among the top performers during the session. Market sentiment improved after the National Stock Exchange moved forward with its IPO process, while expectations of stable liquidity conditions continued to support banking and financial stocks. Strong participation from financials helped benchmark indices remain in positive territory despite weakness in other sectors.

5. Broad-Based Buying in Midcaps and Smallcaps

Broader markets continued to outperform, with midcap and smallcap indices posting gains. Investors remained optimistic about domestic growth opportunities and selectively accumulated stocks across sectors. The strong market breadth reflected healthy participation beyond large-cap stocks and helped sustain the market’s positive undertone.

Key Technical Analysis

Sensex Technical Outlook

The Sensex continues to trade with a positive bias after a strong four-session rally. Although the index witnessed some consolidation today, it remains comfortably above key support levels. Immediate support is placed near 76,800, while resistance is seen around 77,500. The overall trend remains bullish, and any short-term dip is likely to attract buying interest as long as the index holds above support.

Nifty 50 Technical Outlook

The Nifty 50 maintained its position above the crucial 24,000 mark, indicating continued strength in the broader trend. The index is currently consolidating after a sharp upmove and faces immediate resistance near 24,250–24,300. Support is placed around 23,950–24,000. Sustaining above 24,000 keeps the short-term outlook positive and could pave the way for further gains in the coming sessions.

Bank Nifty Technical Outlook

Bank Nifty continues to display relative strength, supported by steady buying in private and PSU banking stocks. The index remains above its key moving averages and is holding near recent highs. Immediate resistance is placed near 56,800–57,000, while support is seen around 55,800. A sustained move above resistance could trigger fresh buying momentum and push the index toward new short-term highs.

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