Midcaps & Smallcaps Shine While IT & Banking Drag | Sensex Add 356, Nifty 122

Mumbai, May 4, 2026: Indian benchmark indices witnessed a volatile trading session on 4th May, largely influenced by domestic developments surrounding the election results in state assembly election. Despite facing intraday profit booking from the day’s high near the 24,290 marks, the market managed to close on a positive note, supported by favorable global cues and a cooling-off in crude oil prices from the last week highs.

At close, the Sensex gained 355.90 points or 0.46% to settle at 77,269.40, while the Nifty advanced 121.75 points or 0.51% to end at 24,119.30.

Sectorally, most indices contributed to the upside, with notable gains seen in Realty, Metal, Healthcare, and Pharma stocks. On the other hand, IT, Media, and both PSU and Private Banking stocks underperformed and acted as laggards.

The broader market also exhibited strength, with the Nifty Midcap index rising 0.63% and the Small Cap index advancing 0.70%, indicating broad-based buying interest across the market.

Nifty Outlook                            

Index formed a small bullish candle with a long upper shadow highlighting intraday volatility as the index consolidates with positive bias around the 20 days EMA.

In line with our expectations Nifty is witnessing consolidation in the broad range of 23,600-24,400 amid stock specific action as we progress through the quarterly earning session.

Within the consolidation a move above Monday’s high of 24,290 will signal extension of the pullback towards the upper band of the range placed around 24,400 levels. While a close below last two weeks identical lows around 23,800 will open downside towards the lower band of the range placed around 23,600 levels.

Short-term support is positioned around 23,600–23,500 range being the confluence of the recent major low and 38.2% retracement of the last 3 weeks pullback (22,183-24,601).  

Bank Nifty Outlook

Index formed a small bear candle with long upper shadow highlighting intraday volatility and selling pressure at higher levels.

Overall, we expect the Bank Nifty to extend consolidation in the broad range of 54,000-57,500 amid stock specific action as we progress through the quarterly earning session of the banking stocks.

Within the consolidation a move above Monday’s high of 55,602 will signal extension of the pullback towards the 56,500 levels. Index has immediate support is placed in the range of 54,500–54,000 zone, being the confluence of the recent low and 38.2% retracement of the last 3 weeks pullback (49,955-57,456).

A breach below the key support area of 54,000 will signal extension of the decline towards 52,500 levels being the gap area of the 8th April.