Nifty clears two-session highs at midday; Trent, Kotak lead; IT drags

The Sensex and Nifty indices continued their upward trend on Tuesday, surpassing their highs from the previous two trading sessions by midday. The Sensex reached 72,955.92, up 573.45 points or 0.79 percent, while the Nifty 50 climbed to 22,723.20, gaining 167.45 points or 0.74 percent. Analysts had previously identified the 22,700 resistance level, which both indices managed to break through.

India VIX experienced a near 5 percent drop, providing support for the market's upward movement. Reliance Industries saw heavy buying, which helped to anchor the broader advance. On the Bombay Stock Exchange, 2,637 stocks advanced compared to 1,500 declining, with 183 stocks in lower circuits and 168 in upper circuits. Among the day's strongest performers, Trent rose 11 percent to ₹2,863.90, with a trading volume of 45,94,484 shares worth ₹1,31,106.36 lakh.

Kotak Mahindra Bank climbed 3.99 percent to ₹432.60, and BSE Limited gained 3.08 percent to ₹3,277.50. Nifty Private Bank was identified as the best-performing sectoral index for the session. However, Tech Mahindra led the decliners, falling 2.23 percent to ₹1,501.70, as the IT sector faced the steepest decline. Coal India, Max Healthcare, Apollo Hospitals, and ONGC also experienced declines.

Gold prices on COMEX remained near their two-month lows due to a stronger dollar and high US Treasury yields, while crude oil prices stayed above $100 a barrel. The options market saw significant call writing at 22,700 and 22,800 strikes, with substantial open interest in 22,600 and 22,500 puts. Technical analysts projected Nifty support at 22,510-22,530 and resistance at 22,820-22,840, with potential for further gains above 22,840.

The Sensex was expected to remain direction-sensitive through the remainder of the week, with the upcoming RBI monetary policy decision continuing to influence market sentiment.