What can trigger the next sharp rally on D-Street?
ET CONTRIBUTORS Metal and financial stocks support Dalal Street as investors track crude prices and bond yields.
Synopsis The Indian stock market closed positively on Wednesday, with Sensex climbing over 299 points to stand at 74,828, and Nifty gaining roughly 118 points to reach 23,447.
Broader market indices also performed well, with Nifty Midcap 100 and Smallcap 100 showing increases of up to 0.9%.
Major sectors like metal and FMCG had significant upticks, while IT stocks underperformed.
By Debaroti Adhikary, ETMarkets.com Last Updated: Sep 23, 2026, 04:16:00 PM IST Follow us The Indian stock market closed in the green on Wednesday, with Sensex and Nifty recording gains of up to 0.5% as oil prices fell below $99 per barrel.ADVERTISEMENT Sensex gained over 299 points to close at 74,828 while Nifty rose around 118 points to end the session at 23,447.
Broader markets outperformed benchmarks, with Nifty Midcap 100 and Nifty Smallcap 100 jumping up to 0.9%.Tata Steel and Bajaj Finance shares jumped over 3% while ITC, UltraTech Cement and Power Grid shares gained nearly 2% each.
L&T, Bajaj Finserv, Sun Pharma and Adani Ports shares rose over 1% each.
Bucking the trend, IT stocks including HCLTech, Infosys and TCS dropped around 1% each.
Among the sectors, metal stocks rallied, with Nifty Metal closing over 2% higher.
The overall market sentiment turned positive, with NSE seeing 2,344 advances against 1,232 declines, while 113 stocks remained unchanged.
Jefferies cuts target price after analyst meet.
Here’s whyWhat can drive a sharp rally on Dalal Street?
The structure of the market in recent days has been technically weak with a downward bias, said VK Vijayakumar, Chief Investment Strategist, Geojit Investments.
He noted that if this market construct is to change there should be some significant triggers.
A sharp dip in crude prices can provide that trigger.
But that is not happening even though Brent crude has dipped below $99.
Another positive trigger can come from a dip in US bond yields.
But that is unlikely in the present macro scenario of high inflation, particularly in the developed countries, the analyst noted.
In brief, these two factors - high crude prices and elevated bond yields- will constrain a rally in the market, he said.ADVERTISEMENT Domestic liquidity is supporting the broader market, with the market activity now focused on the broader market, Vijayakumar pointed out.
Good growth and better growth prospects are attracting investment into many mid-and small-caps.
But valuations in these segments are getting stretched.
“This trend has created a dichotomy in valuations- attractively valued large-caps coexisting with highly valued mid-and small-caps.
The index needs to sustain a higher high and higher low formation and reclaim 23,650 to signal a pause in the ongoing downtrend, he added.ADVERTISEMENT ADVERTISEMENT On the downside, a breach below the previous week’s low of 23,115 will resume the corrective phase towards the 23,000 and 22,800 levels, according to the technical analyst. BI-registered Research Analyst or an Investment Adviser.
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