Market Wrap

Domestic equity markets began the expiry week on a strong footing, driven by improving global sentiment after reports of a possible US-Iran peace understanding over the weekend. Benchmark indices opened with a sharp gap-up and maintained their upward momentum throughout the session, supported by broad-based buying across sectors.

The Nifty50 closed above the crucial 24,000 mark with a solid gain of 1.32%, reflecting renewed investor confidence and strong market participation from both institutional and retail investors. The rally was largely fueled by easing geopolitical concerns, stable global cues, and optimism around liquidity conditions globally.

Among sectors, PSU Banks emerged as the top outperformers, with the index rallying nearly 3%. Technically, the sector witnessed a breakout above key short-term moving averages, while momentum indicators signaled bullish crossovers from oversold levels, suggesting that the positive trend could continue in the near term.

Global markets also supported the bullish undertone, as major Asian and European indices traded firmly in the green amid expectations that central banks may continue maintaining a supportive stance on interest rates and liquidity. Investors also remained focused on crude oil prices, US bond yields, and global trade negotiations, which continue to play a crucial role in shaping overall market sentiment.

What's Ahead

Markets are expected to remain positive in the near term if geopolitical tensions continue to ease and crude oil prices remain stable. Traders will closely monitor upcoming US macroeconomic data, FII activity, and further geopolitical developments during the expiry week.

Stock-specific action is likely to intensify as investors begin positioning ahead of the upcoming earnings season and key global economic announcements. Volatility may remain elevated due to monthly expiry, but overall sentiment currently favors the bulls as long as global risk appetite remains supportive.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its bullish momentum and closed firmly above the psychological 24,000 mark, supported by strong buying in banking, financials, auto, and infrastructure stocks. The index formed a strong bullish candle on the daily chart, indicating sustained upward momentum after opening with a gap-up and holding gains throughout the session. Technically, the RSI moved closer to the 60 mark, reflecting improving strength and confirming positive momentum in the near term. Broad-based participation, with 42 advancing stocks against just 8 declines, further reinforces the bullish undertone. However, selective profit booking in IT, pharma, and metal counters limited sharper upside. As long as the index sustains above the immediate support zone of 23,744–23,566, the trend is likely to remain positive, while a decisive move above 24,320 could open the path towards the next resistance zone of 24,498 in the coming sessions.

Bank Nifty

The NIFTY BANK witnessed a sharp breakout rally and closed above the 55,000 mark, driven by aggressive buying in PSU banks and heavyweight private lenders. The index traded with a strong positive bias throughout the session and formed a robust bullish candle, reflecting sustained buying interest at higher levels. Technically, momentum indicators turned stronger as the RSI moved decisively above the 50 mark, suggesting renewed bullish strength after recent consolidation. The rally was broad-based, with all 14 constituents ending in the green, highlighting strong sector-wide participation. PSU banks remained the key outperformers, while private banking majors continued to provide stability and leadership to the move. Going forward, the index is likely to maintain its positive momentum as long as it holds above the immediate support zone of 54,456–53,937. On the upside, resistance is placed at 56,132, and a breakout above this level may trigger further upside towards 56,650.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index ended with strong gains as broad-based buying across NBFCs, private banks, insurance companies, and diversified financial stocks lifted overall sentiment. The index continued its upward trajectory with all 20 constituents closing in positive territory, indicating exceptional market breadth and strong institutional participation. Technically, the structure remains bullish as the index sustained above key short-term averages and witnessed strength in momentum-driven counters like Bajaj Finance, Cholamandalam Finance, and HDFC Bank. The rally also reflects improving risk appetite and confidence in the financial space amid easing global concerns and supportive domestic liquidity conditions. Immediate support for the index is placed around 25,706–25,460, while resistance is seen near 26,499 and 26,744. Sustaining above current levels could keep the bullish momentum intact in the near term.

Sensex

The BSE SENSEX surged over 1,000 points and closed near the day’s high, reflecting strong bullish sentiment across the broader market. The rally was led by banking, financial, infrastructure, and auto stocks, while mild weakness in IT and defensive counters marginally capped gains. Technically, the index maintained its higher-high, higher-low formation and closed comfortably above key short-term resistance levels, indicating continuation of the prevailing uptrend. Positive market breadth, with 26 advancing constituents against only 4 declines, further strengthened the bullish setup. Supportive global cues, softer crude oil prices, easing bond yields, and improving investor sentiment contributed to the strong move. As long as the Sensex sustains above the support zone of 75,486–74,865, the broader trend is expected to remain constructive. On the upside, immediate resistance is placed near 77,492, followed by 78,113, which could act as the next target zone if momentum sustains.