Taking Stock: Banks help extend the rally for a third day, Nifty above 23,400

Benchmark indices ended the session sharply higher after a range-bound first half, rallying on reports that China is open for trade talk with the US, helping Nifty and Sensex close above 23,400 and 77,000, respectively, up for a third session.

At close, the Sensex was up 309.40 points or 0.40 percent at 77,044.29, and the Nifty was up 108.65 points or 0.47 percent at 23,437.20. BSE Midcap index rose 0.5 percent and smallcap index jumped nearly 1 percent, and among sectors, gains were led by media, PSU bank, oil & gas sector rising between 1-2 percent, however, auto, IT, pharma pack sold off. Banks supported the rally, with PSU lenders emerging as top gainers among the midcap names.

Overnight, US stocks ended slightly lower on tariff-related uncertainty, as consumer and healthcare shares sold off while upbeat results from banks provided support.

European indices were weak with tech stocks led the slump as Trump administration imposed new restrictions on Nvidia Corp's chip export to China, meanwhile Asia ended on a mixed note, with Taiwan Weighted and Hang Seng down 2 percent each, while Straits Times up 0.5 percent.

IndusInd Bank, Axis Bank, Trent, ONGC, Asian Paints were among major gainers on the Nifty, while losers were Maruti Suzuki, Hindalco, Bajaj Finance, L&T, Tata Motors.

In stock-specific action, ICICI Prudential Life Insurance shares gained 3 percent as Q4FY25 profit jumps 122%, IREDA shares rose 5 percent as consolidated profit rose 48%, and IndusInd Bank shares rose 7 percent after derivative discrepancy hit was seen lower than feared. Mahanagar Gas stocks fell 5 percent after Centre trimmed priority gas allocation.

Nearly 80 stocks on the BSE tested 52-week high, including Narayana Hrudayalaya, Eicher Motors, Bharti Airtel, HDFC Bank, SBI Cards, Shree Cements, Chambal Fertilisers, AstraZeneca Pharma, among others. Click here to view full list

Outlook for April 17

Rupak De, Senior Technical Analyst at LKP Securities

The Nifty closed higher after initial weakness in the first half of the session. On the daily chart, the index has closed above the 100-EMA for the second consecutive session. Support is now placed at 23,300, and a positive sentiment is likely to prevail as long as it remains above this level. A decisive fall below 23,300 might trigger a correction towards 23,150/23,000. On the higher side, resistance is visible at 23,650.

Aditya Gaggar Director of Progressive Shares

For most part of the trading session, the Index stayed within its previous day's range, but a sudden spike in the last session pushed the Index to break through its consolidation, ending the day at 23,437.20 with gains of 108.65 points. Sector-wise, Banking and Media were the top performers, while Auto and Pharma sectors experienced corrections of 0.43% & 0.18% respectively. Mid and Smallcaps outperformed the Frontline Index by soaring over 0.70% each.

The Index has formed a positive candle, but it is approaching a key resistance zone of 23,450- 23,500 and is showing a marginal overbought condition. If the Index manages to stay above these levels, the next significant resistance will be at 23,800, with support potentially holding at 23,275 on the downside.

Ajit Mishra – SVP, Research, Religare Broking

Markets edged higher, gaining nearly half a percent as the recovery phase continued. Following yesterday’s surge, the Nifty traded in a narrow range during the first half of the session. However, renewed buying interest in heavyweight stocks across sectors pushed the index higher in the final hours. As a result, it surpassed the resistance at 23,400 and eventually closed near the day’s high at 23,437.20. On the sectoral front, banking, energy, and FMCG were among the top gainers, while auto and pharma sectors remained subdued. The broader indices also posted healthy gains, ranging from 0.63% to 1.01%.

Participants responded positively to favorable cues, including the update on a normal monsoon, further easing of retail inflation, and, importantly, the absence of any negative surprises from global markets. Notably, the sustained strength in banking and financial stocks, along with rotational buying in other sectoral heavyweights, played a significant role in driving the momentum.

With the Nifty now above the 23,400 hurdle, a sustained move could pave the way for a test of the previous swing high around 23,800. Traders are advised to align their positions accordingly, focusing on the sectors that continue to outperform.Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.