Market Wrap

Indian equity markets staged a strong recovery on the weekly expiry session, with the Nifty opening firm and sustaining gains throughout the day to close nearly 0.5% higher. Banking stocks emerged as the primary catalyst for the rally, with PSU banks witnessing broad-based buying interest that pushed the PSU Bank Index up more than 3%, making it one of the top-performing sectors of the session.

The renewed strength in financial stocks reflects improving investor confidence following recent policy support measures and expectations of stronger credit growth. Positive global cues also aided sentiment, as U.S. equities rebounded sharply after the previous week's weakness, while major Asian and European markets traded higher. The improvement in risk appetite suggests investors are increasingly focusing on earnings growth and economic fundamentals despite lingering global uncertainties. However, geopolitical developments and central bank policy signals continue to remain important factors influencing market direction.

What's Ahead

Investors will closely monitor upcoming inflation data, movements in global bond yields, and foreign institutional investor (FII) activity for fresh market cues. Banking stocks are expected to remain in focus following their recent breakout, while developments related to global trade policies and key U.S. economic indicators will also be watched closely.

If global sentiment remains supportive and domestic liquidity conditions stay favorable, the market could attempt to extend its recovery in the near term. However, stock-specific opportunities and sector rotation are likely to drive trading activity, with investors remaining selective amid evolving macroeconomic and geopolitical conditions.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended lower at 23,366.70, slipping 0.21% amid weakness in IT, metals, and select heavyweight stocks. The index remained under pressure throughout the session as investors digested the RBI's revised macroeconomic outlook, while concerns surrounding geopolitical tensions and elevated crude oil prices weighed on sentiment. Technically, the index continues to trade below key resistance levels, indicating a cautious undertone in the near term. The RSI is hovering around the 40 mark, suggesting weakening momentum and a lack of strong buying conviction. A sustained move above 23,588 could trigger a recovery towards 23,725, while failure to hold 23,145 may increase selling pressure and expose the index to 23,008 in the short term.

Bank Nifty

The NIFTY BANK outperformed the broader market, closing 0.35% higher at 54,496.25 as buying interest in PSU and private banking stocks helped offset weakness in a few heavyweight lenders. After witnessing some profit booking during the middle of the session, the index recovered strongly in the latter half, reflecting continued investor confidence in the banking space. Technically, the structure remains constructive with the RSI gradually moving towards the 50 level, signalling strengthening momentum. The index needs to decisively cross 55,146 to extend its upward move towards 55,548, while immediate support is placed at 53,846, followed by a stronger base at 53,444.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index ended marginally higher at 25,056.80, supported by broad-based gains across NBFCs, lenders, and insurance stocks. Strength in counters such as REC, PFC, Bajaj Finance, and Axis Bank helped the index maintain positive momentum despite pressure from select heavyweight financial names. The overall trend remains positive as the index continues to witness rotational buying across financial segments. From a technical perspective, holding above the 24,673 support zone keeps the bullish bias intact, while a breakout above 25,451 could open the door for a move towards 25,691. The positive market breadth within the index also indicates underlying strength and improving investor participation.

Sensex

The BSE SENSEX declined 116.67 points to close at 74,243.34, as losses in IT, metals, telecom, and select large-cap stocks outweighed gains in FMCG and financial counters. Despite the modest decline, the index managed to hold above important support levels, indicating that broader market sentiment remains relatively stable. However, the inability to sustain higher levels reflects continued caution among investors amid global uncertainties and mixed domestic cues. Technically, the index faces immediate resistance at 74,983, and a breakout above this level could pave the way towards 75,441. On the downside, support is placed at 73,504, followed by a stronger cushion near 73,046, which will be critical for maintaining the medium-term bullish structure.w support may lead to increased downside pressure in the short term.