Market Wrap

Nifty 50 kicked off the week with authority, climbing 0.68% to close just above 25,860, sustaining bullish momentum right through the session. The move wasn’t a narrow push - it was broad-based, backed by firm global cues and rising optimism around the India–US interim trade deal, which lifted overall risk appetite.

Asian markets set the tone early. Nikkei 225 and KOSPI both surged over 4%, reflecting renewed investor confidence after political clarity in Japan following PM Sanae Takaichi’s decisive electoral win.

Back home, banking stocks did the heavy lifting. State Bank of India emerged as the single largest contributor to the index’s gains and overtook ICICI Bank in market capitalisation an important sentiment marker for the sector.

The index broke decisively above its three-day trading range, triggering strong participation in midcaps and smallcaps, many of which staged sharp rebounds from oversold levels. Adding to the strength, the Nifty FMCG formed a bullish engulfing pattern near its 200-day SMA, signalling improving sectoral breadth beyond financials.

Despite a gap-up start, there were no signs of exhaustion through the day an indication of confident buyer participation rather than short - covering led gains.

What's Ahead

The short-term structure remains constructive as long as 25,750–25,800 holds as support.

• Immediate resistance: 25,950–26,050

• Key support zone: 25,750–25,800

• Trigger: Sustained momentum above resistance could invite fresh breakout buying

Tuesday’s weekly expiry may inject some volatility, but the underlying tone remains positive due to:

• Continued sector rotation (banks → FMCG → broader market)

• Follow-through buying in banking and defensives

• Supportive global risk sentiment

Traders will also keep a close eye on further developments around global trade dynamics and macro cues from the US and Asia, which could influence near-term risk appetite.

Institutional Activity

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The index extended its upward move, closing at 25,867.30 after oscillating between 25,780 and 25,922, signalling firm control by buyers through the session. The breakout above the recent three-day range, supported by strong participation from financials, metals, and cement names, reinforces the short-term bullish structure. Momentum is improving with RSI rising above 55, indicating strengthening upside traction rather than overbought conditions. Positive breadth (34 advances vs 16 declines) confirms broad participation, while renewed FII interest and trade optimism add to sentiment tailwinds. Technically, the index now eyes resistances at 26,284 and 26,542, while immediate cushions are placed at 25,449 and 25,191. Holding above these supports keeps the bias tilted upward with dips likely to be bought into.

Bank Nifty

The banking index closed near the day’s highs at 60,669.35, after a mildly volatile session that saw it defend the 60,500 zone effectively. Strength across PSU banks and select private lenders helped the index post a decisive gain of 0.91%, with market breadth favouring advances (9 vs 5). The structure shows a gradual grind higher, supported by RSI hovering near 60, a sign of strengthening bullish momentum without overheating. The index appears poised to test higher levels toward 61,609 and 62,190 if follow-through buying continues. On the downside, supports are seen at 59,730 and 59,148, which are likely to act as accumulation zones on intraday declines.

Nifty Financial Services

FINNIFTY outperformed with a 1.25% rise to 28,154.05, driven by sharp buying in NBFCs and diversified financials, indicating renewed appetite for rate-sensitive and lending plays. The positive advance-decline ratio (13 vs 7) highlights expanding participation within the financial pack beyond frontline banks. The index is gradually approaching its resistance band of 28,604 and 28,882, where some supply may emerge. However, as long as it sustains above 27,704 and 27,425, the structure favours continuation of the up-move, with dips likely to attract buying interest from positional traders.

Sensex

The Sensex gained 485 points to settle at 84,065.75, maintaining a higher-high, higher-low formation on the daily chart. Gains across financials, metals, and industrial heavyweights offset weakness in defensives and energy names, keeping overall breadth positive (21 advances vs 9 declines). The index is steadily inching toward the overhead resistance zone of 85,483 and 86,355. Momentum remains constructive, and unless the index slips below immediate supports at 82,664 and 81,792, the prevailing trend favours a continuation of the upward trajectory with selective sectoral rotation supporting the rise.