Nifty Holds Firm as Positive Momentum Offsets Global Yield Headwinds

Headline: Index Update: The Nifty 50 Index closed at 24,398.70 while remaining above its 50-day SMA around 23,828.35, indicating a stable medium-term technical structure. Recent price action reflects continued strength, with the index holding near its recent highs despite a marginal decline in the latest session. The 14-day RSI stood at 63.02, suggesting strengthening momentum while remaining below overbought territory. Immediate support is placed near 24,154.71 and 23,910.73, while resistance is seen around 24,642.69 and 24,886.67. A sustained move beyond these levels could provide greater clarity on the index's next directional trend.

Macro Update: India’s 10-year government bond yield steadied near 6.7% after recent declines as investors awaited a state bond auction. Lower crude prices, easing monsoon-driven inflation risks, and strong foreign inflows supported sentiment. However, higher US Treasury yields ahead of the Federal Reserve’s meeting minutes limited further easing in domestic bond yields.

Top Market Movers: On Tuesday, HCL Technologies Limited (NSE:HCLTECH) led the gainers with a 3.00% increase, closing at INR 1,168.20 followed by Tech Mahindra Limited (NSE:TECHM) up 2.92% at INR 1,447.50 and Infosys Limited (NSE:INFY) which rose 2.84% to INR 1,071.80. On the downside followed Trent Limited (NSE:TRENT) saw the largest drop, falling 12.44% to INR 2,927.80 followed Adani Enterprises Limited (NSE:ADANIENT) down 3.10% to INR 3,107.20 and Adani Ports and Special Economic Zone Limited (NSE:ADANIPORTS) which dropped 1.64% to INR 1,833.90.

Commodity Update: The U.S. dollar traded largely unchanged on Tuesday after recording its sharpest single-day decline since late April, as investors continued to assess the outlook for monetary policy and upcoming economic data. The euro remained broadly stable following the release of key economic indicators, while the Japanese yen stayed near a 40-year low, keeping market attention on possible intervention risks. Gold declined 0.39% to USD 4,150.50, silver fell 0.86% to USD 61.80, copper slipped 0.03% to USD 13,390.75, and Brent crude oil gained 0.38% to USD 72.26.

Our Stance: The Nifty 50 continues to trade within a constructive technical setup, supported by easing domestic macroeconomic conditions and resilient foreign inflows. While near-term momentum remains positive, elevated global bond yields and external uncertainties may limit further upside. Sustained strength above key resistance levels could reinforce the prevailing bullish market outlook.

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