Market Wrap

Indian equities extended their winning streak last week, with the Nifty rallying 1.51% (+373 points) to close above the much-watched 25,000 mark for the first time in nearly two months. Public Sector Enterprises (PSEs) staged a strong comeback, leading the market higher with robust price-volume action. Global cues lent support, with Asian markets like Hang Seng and Nikkei advancing close to 1%, while European markets traded mixed. On the macro front, India’s August CPI inflation edged up to 2.07% from 1.61% in July but stayed below estimates, keeping sentiment upbeat. Adding to the tailwinds, optimism around progress in an India–US trade deal further boosted investor confidence.

What's Ahead

Nifty now faces resistance at 25,153 and 25,220, with support placed at 25,040 and 25,000. Key global triggers this week include US CPI data (due tomorrow) and the Federal Reserve’s policy decision on 17 September, where a rate cut is fully priced in. Back home, the SEBI board meeting on 12 September and further clarity on the India–US trade talks could shape market direction. Sustained foreign inflows and policy support may fuel the rally further, though volatility around resistance zones cannot be ruled out if global macro disappoints.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 closed higher by 108.5 points at 25,114 (+0.43%), sustaining momentum above the 25,100 mark. Gains were driven by BEL, Bajaj Finance, and Bajaj Finserv, while modest support from ICICI Bank and L&T balanced mild weakness in HDFC Bank and SBI. Market breadth was positive with 30 advances against 20 declines, reflecting resilience across industrials and consumer goods, though Wipro and HUL lagged. Infosys added support following its ₹18,000 crore buyback announcement. Technically, the index held firm after testing an intraday low of 25,038 and is now consolidating near resistance zones. Immediate support lies at 24,941 and 24,833, while resistance is capped at 25,287 and 25,395.

Bank Nifty

The Bank Nifty rose 139.7 points to close at 54,809 (+0.26%), recovering from intraday weakness as Axis Bank and ICICI Bank led the gains. However, market breadth was negative, with 9 of 12 constituents ending in the red, weighed down by losses in HDFC Bank, SBI, and mid-cap lenders like IDFC First Bank, AU Bank, and Canara Bank. The index traded in a 272-point range before settling higher, with RSI showing mild improvement near the neutral 50 level. Support is placed at 54,398 and 54,143, while resistance is seen at 55,221 and 55,476.

Sensex

The Sensex climbed 356 points to end at 81,905 (+0.44%), supported by strength in ICICI Bank, Axis Bank, and Maruti. Market breadth was slightly positive with 18 advances against 12 declines, though losses in HDFC Bank, Bharti Airtel, and HUL highlighted selective profit booking. The index continues to trade within a consolidation band, with strong support at 81,374 and 81,045, while resistance levels are placed at 82,436 and 82,764.

FINNIFTY

The Nifty Financial Services index outperformed, rallying 184.6 points to close at 26,363 (+0.70%). Strong buying in Bajaj Finance, Bajaj Finserv, and Shriram Finance lifted the index, while mild pressure from HDFC Bank and SBI had little impact given broad-based gains across 14 of 20 constituents. Axis Bank and ICICI Bank also provided notable support. With momentum improving in NBFCs, the index looks set for further upside. Immediate support lies at 26,150 and 25,950, while resistance is pegged at 26,550 and 26,750.