Bulls charge on D-Street! Nifty tops 25,100, Sensex snaps 3-day losing streak amid broad-based buying

Bank Nifty topped the 56,000 level in trade on June 20.

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26 Aug, 2025 12:21

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Bulls returned to Dalal Street, embarking on a broad-based buying spree to send the equity benchmarks Nifty 50 and Sensex rallying over one percent in trade on Friday, June 20, with heightened buying in the last hour of trade.

As fears of further escalation in the Middle East ebbed, and foreign institutional investors resume buying in the cash markets, the Nifty 50 reclaimed the 25,000 mark, while the 30-share Sensex has rallied nearly 800 points, after snapping a three-session long losing streak.

At close, the Sensex was up 1,046.30 points or 1.29 percent at 82,408.17, and the Nifty was up 319.15 points or 1.29 percent at 25,112.40. About 2366 shares advanced, 1427 shares declined, and 149 shares unchanged.

The buying spree was extremely broad-based, with all sectors trading with solid gains. Auto, metal, and real estate stocks also jumped, with the Nifty Realty index soaring 1.7 percent in trade.

Banking, financial services, and insurance stocks rallied as the Reserve Bank of India finalised the new project financing guidelines. The Bank Nifty index reclaimed the 56,000 mark, while the PSU bank index surged 1.4 percent.

The broader markets also soared, rising in tandem with the frontlines. The Nifty Midcap 100 and the Nifty Smallcap 100 indices gained 1.3 percent and 1.1 percent, each, indicating participation across the market breath.

On June 19, the RBI released the final directions on project finance norms, asking lenders to maintain general provision of 1.25 percent on Commercial Real Estate (CRE), and 1 percent each on Commercial Real Estate-Residential Housing (CRE-RH) and other portfolio during the construction phase.

The final directions are softer than those in the draft norms, posing as a positive for lenders. The May 2024 draft proposal suggested five percent standard assets provisioning for under-construction projects. The final regulations give lenders a much-needed respite.

Further, the semi-annual Sensex rejig is slated to take place today, with PSU Bharat Electronics and retail giant Trent entering the 30-share headline index, while troubled private lender IndusInd Bank, along with FMCG major Nestle India slated to exit.

According to technical analysts, the 24720-24,700 level on the Nifty 50 is identified as a critical support zone. A breach of this level may lead to an escalation in selling activity towards the 24,600-24,500 zone in the near term.

Conversely, 24,900-25,000 represents a significant resistance point and until a decisive breakout occurs above this level, it is advisable to maintain a cautious position in elevated areas.

"Considering the current market conditions, it is advisable to exercise caution and refrain from adopting aggressive trades until a definitive market direction becomes evident. During this period, it is crucial to remain vigilant to geopolitical developments and adopt a stock-focused approach while implementing robust risk management practices," said Sameet Chavan, Head Research, Technical and Derivative - Angel One.

"Nifty moved up sharply after three days of consolidation, resuming its short-term rally. Moreover, the index has reclaimed the 21-day EMA, which could provide further momentum for an upward move. Support is now placed at 24,850, and the index remains a ‘buy on dips’ as long as it holds above this level. On the higher side, it may continue advancing towards 25,350 and beyond," said Rupak De, Senior Technical Analyst at LKP Securities.