The Nifty closed above 22,700, breaking the 22,600 resistance that had held since Tuesday. The rally was triggered after Finance Minister Nirmala Sitharaman signalled interest in reviewing the long‑term capital gains tax, giving the index a lift.
Weekly expiry was on target, and the touch of 22,900 on a weekly basis is seen as a bullish confirmation by market watchers. Analysts say a sustained close above 22,850 would open the door to a move toward the 23,000 mark.
Commodity backdrop helped: U.S. Treasury yields cooled, oil prices dipped from $110 a barrel, and global semiconductor sell‑off eased pressure on Indian IT names. TCS and HCLTech posted solid earnings, reinforcing the notion that the IT sector has found a floor.
Support levels are now around 22,550, with the 22,300‑22,800 range acting as a battleground. A decline below 22,550 could trigger a pullback, while a break above 22,850 would fuel further upside.
Earnings season is set to pick up on Wednesday, with 15 big names reporting, including Canara Bank, BHEL, and Tata Technologies. Market participants will be watching these results for clues on whether the rally can be sustained into the next week.