Indian equity markets closed on a mixed yet positive note on Wednesday, with the Sensex and Nifty 50 hovering near crucial breakout levels. Despite bouts of profit-booking, market breadth and technical indicators continue to reflect underlying strength.

The Sensex closed at 65,536, up 104 points, while the Nifty 50 settled just below the 25,000 mark at 24,973, failing to hold the psychological milestone. The Bank Nifty gained 319 points, closing at 54,536, supported by strong momentum in financial stocks.

Technical Picture: Strength Above Moving Averages

On the charts, the Sensex is trading above its short-, medium- and long-term moving averages, a sign of resilience. The Relative Strength Index (RSI) has climbed above 50, reinforcing positive momentum. However, analysts caution that markets are at a decisive resistance zone, where a breakout could fuel further upside, but a failure might lead to renewed consolidation.

The Nifty 50 also faces a key hurdle at 25,000, a level it briefly crossed in August but failed to sustain. A decisive close above this mark is seen as critical for the next leg of the rally.

Market Breadth and FII-DII Action

Broader market participation remained healthy. Advancing stocks outnumbered decliners for most of the session, though some profit-taking emerged towards the close. FIIs were net sellers of ₹116 crore, while DIIs bought equities worth over ₹5,000 crore, offering stability to domestic markets.

Global Cues Support Sentiment

Global markets were largely stable. The Dow Jones traded 74 points lower, while the Nasdaq gained 71 points. The S&P 500 was up 34 points. Closer home, GIFT Nifty traded above 25,000 with gains of 293 points, indicating sustained optimism.

Sector and Stock Highlights

Autos under pressure: After strong outperformance in recent months, auto stocks such as Maruti Suzuki, M&M, and Bajaj Auto witnessed profit-booking.

IT sector gains: Wipro, HCL Tech, and HDFC Life led the day’s advances, supported by commentary from global fund managers suggesting Indian IT could outperform over the next six months.

Textiles in focus: Ahead of the festive season, textile stocks like Vardhman Textiles and Welspun Living saw buying interest.

Top gainers: Oracle Financial Services (OSS) surged over 10% on strong growth commentary around its cloud business. VTL and IGL also featured among the top performers.

Top losers: JM Financial fell 8%, FirstCry dropped 5%, and BSE shares extended losses amid speculation of upcoming SEBI circulars.

Mutual Fund Data: SIP Flows Steady, Gold ETF Inflows Jump

According to AMFI data, SIP inflows stood at ₹28,265 crore in August, marginally lower than July’s ₹28,464 crore. Notably, gold ETFs attracted ₹2,190 crore, a sharp jump from ₹1,256 crore in the previous month, reflecting investors’ appetite for safe-haven assets.

Outlook: Stock-Specific Opportunities Ahead

Analysts suggest that while major government reforms and sectoral triggers are already factored into valuations, stock-specific opportunities remain attractive. Auto and FMCG stocks have already seen double-digit gains in recent weeks, while IT and textile counters could see fresh traction.

Market experts advise caution at current levels, especially with benchmarks at crucial resistances. “A successful breakout above 25,000 on the Nifty could open the doors for further upside. Until then, investors should focus on quality stocks and avoid aggressive bets,” said one analyst.