Tuesday’s 220‑point climb followed a 50‑point opening surge, setting the stage for a test of 22,875 resistance.
Tech, banking, and real‑estate indices trended lower, with Nifty IT down 0.4% and PSU banks off 0.2%, while chemicals, pharma, and FMCG surged 1.1% each, adding nuance to the market’s top‑heavy rally.
The Nifty Midcap 100 and Smallcap 100 outpaced the benchmark, up 1.08% and 1.56% respectively, reflecting risk appetite among smaller names.
The rupee slipped to 96.42 against the dollar, a 13‑paise drop, tightening the case for a 25‑basis‑point repo hike to 5.50% that analysts expect from Wednesday’s RBI decision. Siddhartha Khemka of Motilal Oswal said the market will likely stay firm with a stock‑specific bias in the near term.
Sudeep Shah of SBI Securities pointed to Bank Nifty’s 55,600‑55,700 EMA zone as a potential hurdle, while Nandish Shah of HDFC Securities highlighted the 22,850 resistance for the broader index. Both agreed that sustained moves above 23,000 could confirm a reversal, whereas a dip could trigger a pullback. Market participants look ahead to the RBI’s decision and GST Council outcomes as key catalysts.