Nifty Scales 25,400 As Fed Rate Cut Sparks IT Rally Infosys, Wipro Shine

The US Federal Reserve's 25 bps rate cut sparked a strong start on Dalal Street. Indian equity markets opened higher, with the Nifty scaling above 25,400.

The US Fed has also guided for two more cuts in 2025. This dovish stance has ignited global optimism. For India, this is a tailwind as lower global rates improve liquidity conditions and are likely to attract risk-on flows. 

At 09:40 a.m. IST, the Nifty 50 traded 89 points higher at 25,420, while the Sensex was up 304 points at 82,998. Broader markets mirrored the gains, with the Nifty Midcap and Smallcap indices trading 0.3% higher.

However, the retail sentiment on Stocktwits for Nifty has moved to 'neutral' at market open. 

Stock Watch

Sectorally, barring metals, all other sectors traded in the green, led by strong buying in technology (+1.3%) and real estate (+0.6%).

Infosys and Wipro were the top Nifty gainers, rising 2%. Sun Pharma followed with over 1% gains after Citi reiterated its 'Buy' rating and added the stock to its Pan Asia Focus List.

On the other hand, Hindalco is among the top Nifty losers, down 1% after a fire incident at its New York plant. No injuries have been reported, and production has been halted for now. 

Cohance shares fell over 5% following a large block deal. Reports suggested that the promoter was looking to sell up to 5.1% stake. 

Indosolar surged 5% after promoter Waaree Energies looked to offload 14.66% stake via an offer for sale (OFS), at a floor price of ₹500.

Poonawala Fincorp has rallied 10% on the back of ₹1,500 crore equity infusion from Rising Sun Holdings.

Biocon rose 2% after its subsidiary received USFDA nod for biosimilars Bosaya (Prolia) & Aukelso (Xgeva).

Escorts Kubota gained 3% following the launch of PRO588i-G combine harvester under the Kubota brand in Punjab and Haryana.

Stock Calls

Analyst Vinayak Gautam shared three stock recommendations for Thursday with a 1-week timeframe:

Wipro: Buy at ₹254 with a target price of ₹259, and stop loss at ₹251

TVS Motor: Buy at ₹3,500, with a target price of ₹3,650, and stop loss at ₹3,450

MOIL: Buy at ₹353 with a target price of ₹370, and stop loss at ₹343

Markets: The Road Ahead

From a technical standpoint, SEBI-registered analysts on Stocktwits shared the trade setup. 

Ashish Kyal said a close above 25,380 on the 15-minute timeframe can extend this rally to 25,470 levels. But a fall below 25,270 in the short term could trigger some profit booking.

A & Y Market Research pegged the intraday Nifty resistance at 25,317 - 25,333, with support at 25,215 - 25,246. For Bank Nifty (Intraday), resistance is seen at 55,443 - 55,557, with support at 55,055 - 55,168.

Pradeep Carpenter said that banks may see profit-taking post Fed's policy stance, while OMCs & gas names could attract fresh buying. He advised a buy-on-dips strategy in the Nifty above 25,300 support. Watch for 25,500-25,600 as supply zones for the index. For Bank Nifty, he identified critical support at 55,300.

Varunkumar Patel noted that foreign investors (FIIs) sold ₹1,100+ cr in the cash market, showing persistent caution. In the F & O segment, they have covered some net index shorts; however, the magnitude of the covering is not as strong as expected. This suggests that while FIIs are trimming bearish bets, they are still not entirely confident about a sustained rally. Their cautious stance is keeping short positions alive at higher levels. 

Patel expects Nifty to test 25,500 during this week. The zone near 25,500 will act as a key resistance given the heavy FII short positioning still present in index futures. A clear breakout above this level will likely require a strong catalyst such as robust corporate earnings or incremental FII buying.

Global Cues

Globally, Asian markets traded mixed, while crude oil prices declined.

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