On Thursday’s weekly expiry day, the Nifty 50 started on a subdued note, initially dipping before gaining positive traction within the first hour of trade and moving toward the 23,250 mark. However, the momentum faded in the second half as the index remained range-bound, slipping slightly from higher levels. Despite this, it managed to hold on to the 23,200 level, supported by gains in stocks like UltraTech, Mahindra And Mahindra, and Sun Pharma. Eventually, Nifty closed the day 50 points higher at 23,205.

The market closed largely in the green but stayed off the day’s high. After opening on a slightly negative note, it recovered from the lows during the early session. However, the momentum turned subdued in the latter part of the trading day.

Broader markets saw buying following a major decline in the last two trading sessions. The Midcap index rose by 985 points to settle at 54,099, with gains in midcap IT stocks driven by strong Q3 performances from Coforge, Persistent Systems, and Zensar Technologies.

Coforge: Shares surged 12% on Thursday after the company reported robust revenue growth for the December quarter, surpassing CNBC-TV18 poll estimates. Coforge also announced a dividend and an acquisition, although there was a slight miss on margin expectations.

Persistent Systems: Shares climbed over 12%, driven by its December quarter results announced on Wednesday. The results met most expectations, and analysts believe the positives are largely priced in at current levels.

Zensar Technologies: The stock jumped 15% to hit an all-time high of Rs 869.7 post its December quarter earnings. Constant currency revenue grew 7.5% year-on-year, while EBITDA stood at 15.6%. Notably, Zensar recorded its highest-ever order book, with total contract value (TCV) at $205 million. Historically, the company has reported negative growth in the December quarter due to furloughs, but this time it bucked the trend.

Thursday’s session also saw the listing of Stallion India Fluorochemicals shares, which debuted at ₹120 on both NSE and BSE, reflecting a premium of 33% over the IPO issue price of ₹90. Despite high market volatility, Stallion India received a strong response from investors across all categories. Investor demand from the NII category was impressive at 422 times, while the QIB portion was subscribed 172 times. Meanwhile, retail investors subscribed 96 times.

Stocks like HPCL, United Spirits, Indus Towers, Mphasis, Mankind Pharma, Ujjivan Small Finance Bank, Nippon Life India, and Suryoday Small Finance Bank are expected to react to their quarterly results, announced after market hours on Thursday.

Investors will also focus on upcoming earnings reports from JSW Steel, Laurus Labs, IndiGo, DLF, Shriram Finance, Hindustan Petroleum Corp, DCB Bank, and Bank of India.

Foreign investors continued to remain net sellers in the cash market on Thursday, while domestic investors were net buyers.

What do the Nifty 50 charts indicate?

Nagaraj Shetti of HDFC Securities said that a decisive move above 23,400 levels could open renewed buying enthusiasm in the market. “Having bounced back from the lower range, the Nifty could move up gradually towards upper range of 23400 levels in the near term,” he said, adding that immediate support is placed at 23,000 levels.

Om Mehra of SAMCO Securities said that a decisive breakout and sustained move above 23,400 would be pivotal to confirm a shift in trend from bearish to bullish. The index is currently hovering near its 9 EMA. The daily RSI is recovering from lower levels, though it remains tilted to the downside. The support remains at the 23,000 level.

According to Rupak De of LKP Securities, the Nifty 50 index failed to break above the 50 EMA on the hourly chart, indicating selling pressure at higher levels. The bearish trend is likely to persist as long as the index stays below 23,400. On the downside, support levels are observed at 23,150 and 23,000.

Technically, after a muted open, the market held positive momentum throughout the day. It also formed a reversal formation on the daily charts, which supports a further uptrend from the current levels.

“We are of the view that as long as it is trading above 23,100/76200, the pullback formation is likely to continue. On the higher side, the market could bounce back to the 23,400-23,450/77000-77100 range. On the other hand, if it falls below 23,100/76200, the sentiment could change, and the market may retest levels of 23,000-22,950/76000-75700,” said Shrikant Chouhan of Kotak Securities.

What do the Nifty Bank charts indicate?

The Nifty Bank index closed the session at 48,589, slipping 0.28% as the index failed to capitalise on the previous session’s Dragonfly Doji formation. Nifty Bank is hovering near its 9 EMA, with the daily RSI showing some recovery from lower levels but still leaning toward the downside.

“On the hourly chart, Nifty Bank is positioned near the middle Bollinger Band, reflecting its non-directional stance. A breakout above 48,750 could open the door for further upside, while a fall below 48,250 may indicate a bearish shift. The index appears poised for range-bound movement in the near term, with the potential for volatility on both sides as it awaits clear directional cues,” Mehra said.