Indian equity markets are currently demonstrating a robust recovery, successfully absorbing recent volatility to settle above psychological benchmarks. The Nifty 50 has extended its winning streak for three consecutive sessions, closing at 25,819 as of the latest trading data. The index has shown significant resilience by respecting a critical support zone between 25,645 and 25,660. Analysts indicate that as long as the 25,650 level holds, the short-term bias remains positive with a "buy-on-dips" strategy. However, a decisive move above the 26,000 resistance level is required to trigger a fresh upside expansion. State-owned lenders are leading the current market momentum. The Nifty PSU Bank index recently surged by 1.31%, buoyed by improved asset quality metrics and strong institutional interest. Punjab National Bank (PNB) remains a top pick in this space, with its share price recently climbing to 128.17, reflecting a gain of over 2.6%. Market analysts have issued "Buy" ratings for PNB, with some raising price targets toward the 140 to 150 range. Broader economic indicators present a stable yet cautious backdrop. India's consumer inflation is estimated to remain at a benign 2.5% for the current fiscal year, though it is projected to rise to 4.3% in the following year. Meanwhile, wholesale inflation has touched a 10-month high of 1.8%, signaling potential price pressures in the commodity cycle. The India VIX, often referred to as the "fear gauge," has cooled significantly to 12.22. This 3.5% drop suggests that immediate market anxiety is evaporating, paving the way for more stable upward movement. Foreign institutional investors (FIIs) have shown mixed activity, but strong domestic institutional buying, totaling over 1,667 crore in recent sessions, continues to provide a solid floor for equities. Investors are advised to remain selective, focusing on public sector enterprises and high-beta sectors like Metals and FMCG, which have recently outperformed the lagging IT sector. Global cues, including potential U.S. tariff adjustments and shifting commodity demand, remain key factors to monitor for continued market direction.