Market Wrap

It was a tough week for Indian equities as persistent selling pressure kept markets under strain. The Nifty50 slipped 0.89% for the week, closing just below the 25,500 mark, despite a mild recovery on Friday from oversold zones. Metals emerged as the lone bright spot — strong buying in steel and aluminium majors helped the Nifty Metal index outperform all sectors. Meanwhile, most other indices, including IT, financials, and autos, remained subdued.

Global cues were largely unsupportive: major Asian indices like the Nikkei, KOSPI, and Hang Seng declined 1–1.8%, while European markets also stayed weak amid fading risk appetite. On the domestic front, sentiment was mixed — positive remarks from the Finance Minister dismissing any abrupt ban on F&O trading calmed nerves, while talk of an India–US trade engagement after Trump’s possible India visit next year lifted optimism slightly. Still, the overall tone remained cautious, with traders rotating from large caps into select cyclicals and metals. Technically, buyers are expected to defend the 25,300–25,400 zone, with resistance seen near 25,600–25,760.

What's Ahead

All eyes now turn to the upcoming India and U.S. CPI inflation data, which will guide global rate expectations. Any upside surprise could rekindle rate concerns and pressure equities. On the domestic political front, Bihar’s Phase-2 voting and results later in the week could bring short-term volatility. Meanwhile, investors will closely monitor FII flows, crude oil trends, and key earnings releases continued FII selling or a crude spike could extend weakness, while strong metal and infrastructure earnings might help steady sentiment.

A credible breakthrough in India–U.S. trade talks could serve as a medium-term tailwind for markets, but in the near term, traders are likely to stay cautious amid global uncertainty and fragile risk appetite.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 index closed nearly flat at 25,492.30, down 17.40 points (0.07%), extending its losing streak for a third consecutive session. Despite a weak finish, market breadth remained positive, with 30 advances versus 20 declines - a sign that select stock-specific buying continues even as overall sentiment softens. Heavyweights like Bharti Airtel (-4.46%), Tata Consumer (-1.97%), and Tech Mahindra (-1.87%) dragged the index lower, while Shriram Finance (+3.81%), Bajaj Finance (+2.66%), and Tata Steel (+2.39%) offered support. Intraday, the index showed volatility - slipping to 25,318 before recovering toward 25,551, suggesting short covering near support zones.

Technically, Nifty remains under pressure from weak global cues, persistent FII outflows, and profit booking in large caps. The RSI continues to drift lower, signalling waning momentum, while a rise in VIX points to elevated caution. Key support levels are placed at 25,327/25,212, while immediate resistance lies at 25,697/25,812. Sustained movement below 25,300 could expose the index to further downside, though buying interest near 25,200 may provide short-term relief.

Bank Nifty

The NIFTY BANK index outperformed significantly, gaining 322.55 points (+0.56%) to close at 57,876.80. The rally was led by ICICI Bank (+1.68%) and AU Bank (+0.15%), while SBI (-0.62%) and Axis Bank (-0.55%) capped the gains. With 9 of 12 constituents closing higher, the index exhibited renewed strength and buying interest around crucial support zones.

Technically, the Bank Nifty has bounced off its 20-day EMA, confirming support and signalling a short-term reversal attempt. The RSI has improved to around 60, showing a mild revival in momentum. Immediate support levels are seen at 57,542/57,334, while resistance is located at 58,212/58,419. A sustained close above 58,000 could pave the way for further upside toward 58,500, while failure to hold 57,300 could invite profit booking.

Sensex

The SENSEX ended marginally lower, slipping 94.73 points (-0.11%) to settle at 83,216.28. The index remained rangebound, reflecting indecision among market participants. Losses in Bharti Airtel (-4.46%), Tech Mahindra (-1.91%), and Reliance (-1.17%) offset mild gains in Infosys (+0.76%), ICICI Bank (+1.69%), and Kotak Bank (+0.37%). Market breadth was evenly balanced, with 15 advancers and 15 decliners, underlining a neutral bias.

Technically, the Sensex is hovering near short-term support at 82,560/82,178, while resistance is placed at 83,796/84,179. The index’s ability to sustain above 82,500 will be key for maintaining stability. A close above 83,800 could revive upward momentum, while a breach below 82,100 may open the door to a deeper correction.

FINNIFTY

The NIFTY Financial Services (FINNIFTY) index surged 205.65 points (+0.76%) to close at 27,238.75, outperforming the broader market. The rally was driven by strong gains in BSE (+8.61%), Shriram Finance (+3.81%), and HDFC Life (+1.54%), while weakness in PFC (-2.64%), Axis Bank (-0.36%), and SBI (-0.62%) limited upside. Overall, 15 of 20 constituents closed higher, reflecting broad-based optimism in select financial names.

Technically, the index is showing early signs of consolidation after a pullback from recent lows. Immediate support levels are identified at 27,034/26,902, while resistance stands at 27,459/27,590. A sustained move above 27,450 could accelerate gains toward 27,700–27,800, while failure to defend 27,000 may bring the index back into a consolidation phase.