Market Wrap

Indian equity markets delivered a powerful comeback, with benchmark indices rallying nearly 6% and decisively reclaiming the 24,000 mark effectively wiping out losses accumulated over the past four weeks. The sharp rebound signals a clear shift in sentiment, driven by renewed institutional buying and improving global cues.

The rally was broad-based, with most sectors participating; however, auto stocks stood out as top performers, advancing nearly 3% on the back of strong demand expectations and favorable technical setups. Financials also played a pivotal role, pushing Bank Nifty higher by around 8.5% for the week, while the Nifty itself surged close to 5.9%.

A key catalyst behind the upmove was the announcement of a temporary ceasefire between the United States and Iran, which significantly eased geopolitical tensions and triggered a global risk-on sentiment. This optimism was mirrored across international markets, further boosting domestic investor confidence.

Adding to the bullish momentum, BSE market capitalization jumped by ₹28.86 lakh crore, highlighting aggressive participation from institutional investors. On the macro front, stable crude oil prices, easing global risks, and supportive liquidity conditions provided a strong foundation for the rally.

What's Ahead

Going forward, markets will closely monitor whether the US–Iran ceasefire holds, as any escalation could quickly reverse sentiment. Domestically, upcoming inflation data will be a key trigger, shaping expectations around RBI’s policy trajectory.

The ongoing earnings season will also be critical particularly for midcap and smallcap stocks where stock-specific action is likely to intensify based on results and management commentary.

From a technical standpoint, Nifty has immediate support in the 23,850–23,800 zone, while resistance is seen in the 24,300–24,400 range. Sustained global stability and strong earnings could help markets build on the current momentum. However, any negative surprises either from macro data or geopolitical developments may introduce short-term volatility.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 staged a strong rebound, closing at 24,050.60 with gains of 1.16%, forming a bullish candle near the day’s high indicating sustained buying interest throughout the session. The index held above its intraday support zone and witnessed broad-based participation, particularly from auto, banking, and consumption stocks, while IT continued to lag. Technically, momentum indicators are improving, with RSI moving above the 50 mark, signaling a shift from bearish to neutral-positive territory. The index is now approaching a crucial resistance band at 24,497–24,773, where profit booking may emerge. On the downside, immediate support is placed at 23,604 followed by 23,328. A sustained move above resistance could extend the rally, while failure to hold above 24,000 may lead to consolidation.

Bank Nifty

The NIFTY BANK index outperformed, rising 1.99% to close at 55,912.75, with a strong bullish structure as it traded consistently higher and closed near the day’s peak. The rally was supported by synchronized strength across PSU and private banking stocks, reflecting strong institutional participation. Technically, the index has shown a decisive bounce from lower levels, with RSI trending higher towards 60, indicating strengthening momentum. The immediate resistance is placed at 57,334, followed by 58,214, while key support levels are seen at 54,491 and 53,612. As long as the index sustains above the 55,000 mark, the bias remains positive, with potential for further upside in the near term.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index surged 2.06% to close at 26,213.90, supported by strong gains across banks and NBFCs, indicating broad-based strength within the financial space. The index formed a bullish candle and maintained a steady upward trajectory, reflecting consistent buying demand. Momentum indicators are turning favorable, with RSI indicating a recovery trend. However, the index is approaching a key resistance zone near 27,347–26,582, which could act as a supply area in the short term. On the downside, immediate support lies near recent breakout levels, and a hold above these zones could sustain the bullish momentum. Any breach below support may trigger short-term consolidation.

Sensex

The BSE SENSEX gained 1.20% to close at 77,550.25, extending its recovery with a strong bullish candle supported by gains in banking, auto, and consumption stocks. The index witnessed broad-based buying, although weakness in IT and pharma stocks capped the upside. Technically, the structure remains positive, with improving momentum as the index sustains above key short-term averages. The next resistance is placed at 78,987 followed by 79,877, while immediate support lies at 76,113 and 75,224. A sustained move above resistance levels could signal continuation of the uptrend, while any pullback towards support zones may offer buying opportunities.