The Nifty 50 index continued its upward trajectory, marking its fifth consecutive session of gains. The benchmark index closed 95 points higher at 24,869.00, after trading within a narrow 100-point range throughout the day.

Strong Opening and Positive Bias

The index kicked off the session on a strong note, opening with a 90-point upside gap. This positive sentiment persisted throughout the trading hours, with the index maintaining an upward bias.

IT Sector Leads the Rally

The information technology sector emerged as the star performer of the day, with the Nifty IT sub-index surging by 2.70%. This rally in IT stocks was primarily driven by growing expectations of a potential interest rate cut by the US Federal Reserve at the upcoming Federal Open Market Committee (FOMC) meeting.

Infosys in the Spotlight

Infosys, a major player in the IT sector, stood out as the top performer among Nifty constituents. The company's shares rose by nearly 3.00% following an announcement that its board will consider a share buyback proposal. This news likely contributed to the positive sentiment surrounding IT stocks.

Technical Levels and Market Outlook

The Nifty successfully reclaimed its 100-day moving average (100-DMA) at 24,820.00, signaling strength in the ongoing uptrend. However, the index is now approaching a critical resistance level around the 25,000.00 mark.

Market analysts anticipate that the Nifty may experience range-bound trading as it nears this key resistance zone. For those looking at support levels, immediate support is expected in the 24,720.00-24,750.00 range.

As the Nifty continues its ascent, investors and traders will be closely watching how it behaves around the psychologically important 25,000.00 level in the coming sessions.

The Nifty staged a strong recovery, gaining 198 points to close at 24,625 after three consecutive sessions of losses. The rally was driven by India's Q1 GDP growth of 7.80%, which exceeded consensus estimates of 6.80% and marked the highest expansion in five quarters. Broader markets outperformed with Nifty Midcap 100 and Nifty Smallcap 100 rising 1.97% and 1.57% respectively.

Sector Performance

Auto and IT sectors led gains, with the Nifty Auto index surging nearly 3% on strong August sales numbers. Top performers included Bajaj Auto, Hero MotoCorp, Tata Motors, and Eicher Motors. 42 out of 50 Nifty stocks closed positive. Bank Nifty recovered after five consecutive losses, closing above 54,000 with a 0.65% gain.

Technical Analysis

Market experts identify key resistance at 24,710-24,740 levels, with support at 24,500-24,470. Technical analysts suggest the short-term trend has reversed upward but maintain a cautious 'sell on rise' sentiment below 24,850.

Key Levels to Watch

Market Outlook

While the current rally is significant, investors should remain cautious. The strong GDP data has provided a boost to market sentiment, but technical indicators suggest a potential for volatility. Traders are advised to watch the identified support and resistance levels closely in the coming sessions.

The outperformance of broader markets, particularly in the midcap and smallcap segments, indicates growing investor confidence beyond large-cap stocks. However, the sustainability of this trend will depend on upcoming economic data and global market cues.

Investors should keep a close eye on auto and IT sectors, which have shown particular strength in this rally. The recovery in Bank Nifty after a losing streak also warrants attention, as the financial sector often plays a crucial role in broader market movements.