Market Wrap

Indian equity markets ended the week on a cautious note, with the Nifty 50 closing at 23,366, down 0.77% on a weekly basis. After a weak start, the benchmark found support near crucial levels and traded within a narrow 300-point range for most of the week, reflecting a lack of decisive direction as bulls and bears remained evenly matched.

Sectoral performance remained mixed, with no clear leadership emerging across the broader market. The key domestic trigger was the RBI's monetary policy announcement, which initially sparked volatility but was ultimately interpreted positively by investors. Alongside the policy decision, the central bank unveiled measures to enhance liquidity and encourage foreign participation in government securities, helping improve overall market sentiment.

Supporting the bullish narrative, India's Q4 GDP growth came in at 7.8%, surpassing market expectations, while growth projections for FY26 were revised upward, reinforcing confidence in the country's economic outlook. The Indian rupee also staged a strong recovery during the week, ending near 84.94 against the US dollar.

Global cues remained mixed, with US markets showing divergent trends, Asian equities ending lower, and European markets trading largely flat. Investors also continued to monitor developments surrounding India–US trade negotiations, as any progress could provide support to export-oriented sectors.

What's Ahead

Markets will closely track a series of important inflation readings next week, including India's May CPI data and the US CPI and PPI reports, which could shape expectations regarding future interest-rate decisions globally.

While stronger-than-expected GDP growth provides a supportive backdrop for Indian equities, sustained upside momentum may depend on improved corporate earnings visibility and stronger foreign institutional investor participation.

From a technical perspective, Nifty's immediate support zone lies between 23,150 and 23,250, while resistance is placed around 23,555–23,620. A decisive breakout above resistance or a breakdown below support could determine the market's next directional move. Investors will also remain watchful of global market trends, crude oil prices, currency movements, and further updates on India–US trade discussions.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 continues to trade in a consolidation phase, ending the session at 23,366.70 amid mixed sectoral participation and cautious investor sentiment following the RBI policy outcome. Despite intraday volatility, the index managed to hold above key support levels, indicating that buyers remain active on declines. However, the RSI hovering near the 40 mark suggests weakening momentum and a lack of strong bullish conviction in the near term. As long as Nifty remains above the 23,145–23,008 support zone, the broader structure remains stable, but sustained upside will require a decisive move above 23,588, followed by 23,725. Until then, range-bound trading with stock-specific action is likely to dominate market activity.

Bank Nifty

The Nifty Bank index displayed relative strength, closing 0.35% higher at 54,496.25 as buying interest in PSU and private banking stocks offset weakness in select heavyweights. The index witnessed profit booking during the session but recovered strongly in the latter half, reflecting continued demand at lower levels. Momentum indicators have improved, with the RSI moving toward the 50 level, signalling strengthening price action. Technically, the index remains well positioned above its immediate support zone of 53,846–53,444, while resistance is seen at 55,146 and 55,548. A sustained breakout above the resistance band could trigger fresh upward momentum, while any decline toward support levels may continue to attract buying interest.

Nifty Financial Services

The Nifty Financial Services index extended its resilience, ending marginally higher at 25,056.80 as strength in NBFCs, power financiers, and select private lenders helped offset weakness in a few heavyweight constituents. Positive market breadth indicates underlying buying interest across the financial space, suggesting that sentiment remains constructive despite limited index gains. Technically, the index is holding above the psychological 25,000 mark, which keeps the near-term outlook positive. Immediate support is placed at 24,673–24,432, while resistance is seen at 25,451–25,691. A decisive move above the resistance zone could strengthen bullish momentum, whereas a breach of support may lead to short-term consolidation.

Sensex

The Sensex ended marginally lower at 74,243.34 as weakness in IT, metals, telecom, and select heavyweight stocks outweighed gains in FMCG and financial counters. The index continues to trade within a broader consolidation range, reflecting investor caution amid mixed domestic and global cues. While buying in defensive and financial stocks helped cushion the decline, the absence of broad-based participation limited any meaningful recovery. Technically, the index remains above its key support zone of 73,504–73,046, which should act as a crucial cushion in the near term. On the upside, resistance is placed at 74,983 and 75,441. A breakout above these levels could revive bullish momentum, while failure to hold support may result in increased selling pressure and a deeper corrective move.