After witnessing heightened volatility near its recent highs on Wednesday, the Nifty continued to consolidate on Thursday, maintaining a positive bias amid stock-specific buying and selling pressure. Opening marginally lower, the index witnessed an intense tussle between buyers and sellers.
Although buyers initially attempted to push the market higher, selling pressure emerged near the previous session's high, capping the upside. The index subsequently drifted lower before entering an extended phase of sideways consolidation. Eventually, the Nifty settled 44 points higher at 25,299, managing to close in positive territory despite another volatile trading session.

Among Nifty constituents, HDFC Life and Bajaj Finance emerged as the top gainers, while ONGC and Hindustan Unilever were among the major laggards. Sectorally, performance remained mixed. PSU Bank stocks continued to lead the rally, followed by Realty, which attracted fresh buying interest.
On the other hand, IT stocks remained under selling pressure, while the Auto index also ended on a weak note. The broader markets extended their upward momentum, with the Nifty Midcap 100 gaining 0.85% and the Nifty Smallcap 100 outperforming with a 1.12% advance, indicating continued buying interest beyond frontline stocks.

Indian equities may witness some further consolidation in the near term following the sharp rally over recent sessions, although the broader market bias remains positive. Improving Q2FY27 earnings, renewed foreign institutional investor participation and lower crude oil prices continue to provide fundamental support to the market.
While intermittent profit booking cannot be ruled out after the recent gains, broader market participation and improving earnings visibility are helping sustain investor confidence. Investors will also track Q2FY27 earnings announcements on Friday, with Grasim Industries, Tata Motors Passenger Vehicles, ABB India, Eicher Motors and companies from the Godrej group among those scheduled to report their results.

Nifty technical outlookNagaraj Shetti of HDFC Securities said the ongoing consolidation following nearly two weeks of strong gains indicates an absence of significant selling pressure, despite the Nifty trading close to an important resistance zone. He believes the current consolidation or a minor corrective move could conclude soon, potentially providing a buying opportunity for short-term investors.
According to Shetti, a decisive breakout above 25,400 could open the door for a move towards the 26,000 mark in the near term. On the downside, immediate support is placed at 25,000. Vatsal Bhuva of LKP Securities said the Nifty has been consolidating within a narrow range over the past two to three trading sessions while maintaining its bullish undertone.

However, with the index trading in overbought territory, he cautioned that a mild retracement from current levels cannot be ruled out. In such a scenario, 25,000 is expected to act as immediate support, followed by a stronger support zone at 24,800. Nevertheless, Bhuva believes the broader trend remains positive and recommends maintaining a buy-on-dips approach.
On the upside, 25,500 remains the key resistance, with the index likely to trade within the 25,000-25,500 range in the near term. Hitesh Rathi of Angel One said the 25,100–25,050 range would provide immediate support, followed by a stronger support zone at 24,850-24,750.

On the upside, the 25,350-25,400 band is likely to act as the immediate hurdle, followed by a stronger resistance zone between 25,450 and 25,500. Bank Nifty outlookMeanwhile, the Bank Nifty continued to attract strong buying interest, closing 1.19% higher and moving within 296 points of its previous all-time high recorded on February 3.
Sudeep Shah of SBI Securities said the 60,900-61,000 zone would act as a crucial support area, while 61,800-61,900 remains the immediate resistance range. He added that a decisive breakout above this resistance zone could pave the way for the Bank Nifty to scale fresh record highs.