India's Nifty 50 surges 1% on TCS earnings, stays range-bound
Indian equities rallied strongly as robust IT earnings eased volatility, though the benchmark index remains technically trapped below a crucial long-term resistance level.
Indian equities rallied to close the week, with the Nifty 50 gaining 244.10 points, or 1.02%, to settle at 24,206.90. The advance was driven by an in-line first-quarter update from Tata Consultancy Services, which kicked off the corporate earnings season on a constructive note. Broad-based buying pushed advancing stocks to 2,339 against 976 declines, supported by reports of continued technical talks between the US and Iran that tempered geopolitical anxiety.
Sectoral gains were concentrated in rate-sensitive and cyclical pockets. The Nifty PSU Bank index climbed 3.03% on strong quarterly business updates, while Nifty Realty led the market with a 3.49% jump. The Nifty IT index added 1.96% following the TCS results, and defensive sectors lagged, with fast-moving consumer goods closing slightly negative.
Despite the bullish close, the Nifty 50 remains technically range-bound. The index is still trading below its 200-day moving average and faces immediate resistance at 24,300. A decisive move above that level is required to signal a genuine recovery in momentum, whereas a breach of the 23,800 support zone could trigger a decline toward 23,500.
The banking sector showed stronger technical momentum, with the Nifty Bank index surging 1.39% to 58,045.90. The index successfully reclaimed its 10, 21, and 200-day moving averages, though a negative MACD crossover suggests some short-term momentum loss. Sustaining the 57,800 support level will be critical for the index to test resistance near 58,700.
Against this backdrop of broad index consolidation, selective breakout trades are emerging. MarketSmith India flagged Equitas Small Finance Bank as a trendline breakout buy near ₹82, targeting ₹100, citing its improving deposit growth and asset quality despite an elevated price-to-earnings ratio of 86.73. The advisory also recommended Knowledge Marine & Engineering Works, highlighting a consolidation base breakout near ₹2,410 with a target of ₹2,690, driven by long-term government dredging contracts and port infrastructure growth.
