Market Wrap

Indian equities recovered smartly from early losses on Friday as the Nifty erased its intraday weakness to close nearly flat at 25,910.05, displaying remarkable resilience amid global volatility. The session began on a soft note with the index hitting a low near 25,768, but a sharp post-3 PM rally lifted sentiment and pushed the market comfortably above key support levels. The Bihar election outcome, which delivered a decisive win for the NDA, acted as a strong domestic trigger, boosting investor confidence and prompting broad-based buying into the close.

Sectorally, PSU banks (+1.17%) led the gains, while IT (-1.03%) underperformed due to weak global cues. Overall breadth remained mixed but leaned positive, with 8 of 12 sectoral indices ending in the green. On a weekly basis, the Nifty surged 417 points (+1.64%), extending its winning streak and reflecting strengthening risk appetite. Markets also tracked encouraging macro developments, including India–US trade engagement talks, which investors see as a potential medium-term tailwind for equities.

What's Ahead

Markets may continue to draw support from post-election optimism and improving global sentiment. The focus will now shift to any concrete announcements on India–US trade discussions, which could provide a “double booster” for equities if confirmed. Near-term, the 25,700–25,800 zone remains a critical support, while 26,000–26,080 is the immediate resistance band - a sustained breakout above 26,000 could open room for a fresh leg higher. Traders should monitor crude price trends, global macro cues, and FII/DII flows closely. As long as Nifty holds above 25,700, buy-on-dips remains the favored strategy; a break below that zone, however, would warrant a defensive, stock-specific approach in the near term.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 closed at 25,910.05, up 0.12%, after staging a strong intraday recovery from early weakness driven by favorable Bihar election trends. The index reclaimed momentum as buying emerged in autos, PSU banks, and select defensives, led by Tata Motors (+3.20%), Eternal (+2.15%), and BEL (+1.60%). Despite pressure from Infosys, Tata Steel, and ICICI Bank, market breadth stayed positive with 30 advancers. Technically, Nifty formed a bullish intraday reversal pattern and continues to hold above key short-term levels, supported by a stable RSI near 60, indicating healthy momentum. Immediate support sits at 25,739 and 25,625, while resistance is placed at 26,107 and 26,220 - a breakout above 26,107 could accelerate the next leg higher.

Bank Nifty

Bank Nifty ended at 58,517.55, up 0.23%, after a steady intraday rebound. Strong moves in Canara Bank, Axis Bank, and HDFC Bank offset weakness in IndusInd Bank and ICICI Bank, keeping market breadth positive with 10 gainers. The index held above its intraday lows and posted a higher close, reflecting underlying strength. Importantly, RSI remains elevated near 70, signaling sustained bullish momentum with only mild overbought conditions. Near-term support lies at 58,173 and 57,961, while resistance is placed at 58,862 and 59,075—a breakout above 59,000 could set up a move toward lifetime highs.

Sensex

Sensex closed mildly higher at 84,562.78, supported by gains in Eternal, BEL, SBI, and Bajaj Finance, even as IT and private banking names partly offset the upmove. The index continues to trade above key moving averages, indicating a stable short-term structure. Support sits at 83,908 and 83,553, while resistance remains firm at 85,058 and 85,413. Holding above 84,000 keeps the bias upward.

FINNIFTY

FINNIFTY closed at 27,491.85, up 0.35%, powered by a sharp rally in Muthoot Finance (+9.93%) and strong moves in BSE, Axis Bank, and Jio Financial. Despite isolated weakness in insurance and NBFC names, the index maintained upward traction and broad positive breadth. Support lies at 27,321 and 27,211, while resistance is seen at 27,677 and 27,787. Sustaining above 27,500 would reaffirm bullish continuation.