Market Wrap

Indian equities posted a strong performance through the past week, with the Nifty50 climbing nearly 1.5% to close just shy of the 25,300 mark, supported by renewed buying in large-cap stocks and steady institutional inflows. The standout performer was the IT sector, which rallied close to 5% as optimism returned ahead of Q2 results and amid signs of recovery in U.S. tech spending. Broader sentiment was bolstered by the RBI’s monthly bulletin, which reaffirmed sustained economic momentum and a moderating inflation trend. Globally, equity markets traded range-bound U.S. indices ended flat as investors awaited inflation data and Fed minutes, while European and Asian markets reflected similar caution. Reports indicating a possible increase in India’s weightage within the MSCI Emerging Market Index also supported domestic sentiment, with expectations of higher foreign inflows in the coming weeks.

What's Ahead

The near-term market tone remains constructive, with strong technical support around the 25,000 mark on the Nifty. However, traders should stay cautious ahead of key macro events including U.S. CPI data, China’s trade figures, and India’s WPI inflation release all of which could shape global risk appetite and FII flows. A decisive breakout above 25,350 could trigger fresh momentum toward 25,500 levels, while failure to sustain above 25,000 may prompt short-term consolidation. Overall, the bias remains positive, with dips likely to attract buying interest in select large-cap and IT counters.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its winning streak, rising 103.55 points (+0.41%) to close at 25,285.35, supported by broad-based buying across key sectors. With 35 stocks advancing and 15 declining, market breadth remained firmly positive. Gains were led by Cipla (+3.22%), SBI (+2.15%), and Maruti (+1.75%), while mild profit booking was seen in metals and select IT names like TCS and Tech Mahindra. Technically, the index maintained higher highs and higher lows on the daily chart, reflecting sustained bullish momentum. The RSI, hovering around 60, indicates strengthening buying pressure, while the close above 25,250 reinforces short-term optimism. Immediate support lies at 25,110 and 25,001, while resistance is seen near 25,461 and 25,570 a breakout above which could push the index toward new highs.

Bank Nifty

The Bank Nifty outperformed, rallying 417.7 points (+0.74%) to close at 56,609.75, with all 12 constituents ending in the green a rare display of sector-wide strength. Gains were driven by PSU and mid-tier banks such as PNB, SBI, IndusInd Bank, and IDFC First Bank, while heavyweights HDFC Bank (+0.39%) and ICICI Bank (+0.30%) lent steady support. The index’s close above 56,600 marks a bullish breakout, reinforced by an EMA crossover and an RSI reading above 60, suggesting momentum is firmly on the upside. Near-term support is placed at 56,012 and 55,642, while resistance levels stand at 57,208 and 57,578. Sustained trade above 56,750 could extend the rally toward the 57,500 zone.

Sensex

The Sensex climbed 328.72 points (+0.4%) to settle at 82,500.82, as investors continued to accumulate banking, financial, and auto names. Outperformance in SBI (+2.15%), Maruti (+1.75%), and Axis Bank (+1.11%) anchored the rally, even as heavyweights like TCS (-1.09%) and Tata Steel (-1.45%) capped broader gains. The index remains well-positioned within an uptrend channel, and its close near the day’s high signals underlying strength. Immediate support is seen at 81,913 and 81,550, while resistance is pegged at 83,088 and 83,452. A decisive move above 83,100 could trigger another leg higher toward record levels.

FINNIFTY

The Nifty Financial Services Index added 117.95 points (+0.44%) to close at 26,842.25, aided by firm buying in leading lenders and insurance plays. SBI (+2.15%), LIC Housing Finance, Axis Bank, and ICICI Prudential Life rose over 1%, helping offset weakness in Muthoot Finance (-2.85%) and ICICI General Insurance (-1.06%). The index’s steady climb and positive breadth (12 gainers vs 8 losers) underscore continued investor confidence in the financial space. With the RSI trending higher, momentum remains constructive. Support levels are placed at 26,710 and 26,550, while resistance is expected at 26,980 and 27,120. Sustained strength above 26,850 could pave the way for a move toward 27,200 in the near term.