Bulls are back on the offensive today, carrying momentum from Monday's rebound into the weekly expiry session. The primary objective is clear: breach Monday's high of 22,621 on the Nifty to unlock the next leg toward 22,800. While the overall market texture remains fragile—characterized by persistent sell-on-rallies pressure—the sentiment has shifted slightly in favor of the bulls for the second consecutive day.
Global cues are mixed but supportive. Oil prices cooled off overnight, removing some inflationary headwinds, though bond yields remain sticky at elevated levels. On the tech front, the AI trade is showing no signs of fatigue; the Nasdaq hit record highs, which is a direct bullish signal for Indian IT stocks. Expect these names to lead the charge if the broader index finds footing.
Nifty Bank is the stronger of the two indices, but it's not a free ride. The index is hitting a brick wall at the 55,000 mark, largely due to HDFC Bank's underperformance dragging the average down. Bulls need to retest the 55,000-55,200 zone to confirm strength, with critical support resting between 54,350 and 54,500. If this support breaks, the bounce narrative weakens significantly.
In the corporate news flow, banking stocks like Kotak, Axis, and IndusInd are likely to react to the broader sector sentiment. However, the standout name today is Trent. The retail major reported 23% revenue growth in Q2, a sharp contrast to the sluggishness in other sectors. This data point could see heavy buying interest as investors hunt for growth stories in a choppy market.
For the rest of the day, watch the 22,621 level like a hawk. A clean break above that number opens the door to 22,800. Conversely, a rejection here could push the index back into the 22,350-22,400 support zone. The weekly expiry adds a layer of options-related volatility, so expect sharp, intraday swings rather than a smooth trend.