Market Wrap

In the weekly expiry session, the Nifty opened on a subdued note and faced selling pressure during the initial hour of trade. After testing key intraday support levels, the index witnessed steady buying interest at lower levels, enabling a gradual recovery that erased early losses. During the second half, price action turned range-bound, with the index moving in a narrow band before settling slightly above the 25,700 mark, posting a modest gain of 0.17%. The ability to hold above support highlights persistent dip-buying despite the broader consolidation seen in recent sessions.

On the sectoral front, PSU Banks emerged as clear outperformers, with the index advancing more than 2% intraday. The move signals renewed institutional interest, supported by expectations of improving credit growth and comfortable liquidity conditions. Other sectors remained largely mixed, reflecting cautious sentiment ahead of key global cues.

Globally, U.S. markets ended on a mixed-to-muted note overnight, setting a cautious tone for Asian markets, which also traded mixed. European equities, however, managed to post modest gains. Investors worldwide remain focused on upcoming U.S. inflation data and Federal Reserve commentary, as these will shape expectations around interest rates and influence foreign capital flows into emerging markets like India..

What's Ahead

Markets are likely to remain range-bound with a mild positive bias as long as the Nifty sustains above the crucial 25,600 support zone. Continued strength in PSU Banks and select financial stocks could provide leadership if momentum holds.

Investors will closely monitor global macro developments particularly U.S. inflation readings, bond yield movements, and signals from the Federal Reserve alongside domestic institutional flows and sector-specific triggers. While unexpected global or geopolitical developments may induce volatility, the consistent buying on declines suggests underlying resilience in the near term.

Institutional Activity

Market Snapshots

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its recovery for a second consecutive session, closing higher at 25,725.40 after witnessing intraday volatility but holding above key support levels. Selective buying in FMCG, IT, and capital goods stocks helped offset weakness in metals and a few heavyweight names. Technically, the index remains in a consolidation phase with a mild positive bias, as momentum indicators show improvement the RSI has turned upward and moved above the 50 mark, signaling strengthening bullish momentum. Immediate support is placed at 25,309 followed by 25,050, while on the upside, resistance is seen at 26,144 and 26,402. Sustaining above the 25,600–25,700 zone could open the door for a gradual move toward higher resistance levels, whereas a break below support may trigger renewed selling pressure.

Bank Nifty

The NIFTY BANK index closed higher at 61,174.00 after recovering from early losses, led primarily by strong gains in PSU banks while private lenders showed mixed performance. The index formed a positive intraday structure, indicating buying interest emerging at lower levels. Momentum remains constructive, with the RSI moving above the 60 mark, suggesting strengthening bullish undertones. Immediate support is seen at 60,234 followed by 59,653, while resistance is placed at 62,114 and 62,695. As long as the index holds above the 60,200 zone, the short-term outlook remains positive with potential for a move toward the 62,000–62,700 range; however, failure to sustain above support could lead to consolidation or mild corrective action.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index ended marginally lower at 28,287.40 as weakness in private banks and select NBFCs offset gains in PSU lenders and housing finance stocks. The index continues to exhibit sideways movement, reflecting a lack of clear directional momentum within the broader financial space. Market breadth remained slightly negative, reinforcing the consolidation bias. Immediate support is placed at 27,804 followed by 27,505, while resistance levels are seen at 28,769 and 29,068. A decisive move above the resistance zone could trigger fresh buying interest and improve sentiment, whereas a break below support may lead to increased downside pressure.

Sensex

The BSE SENSEX closed higher at 83,450.96, supported by gains in IT, capital goods, and defensive stocks, although declines in select heavyweight counters limited the overall upside. The index maintained a positive undertone throughout the session, indicating steady institutional participation despite ongoing consolidation. Technically, the structure remains range-bound with a slight upward bias as long as key supports hold. Immediate support is placed at 82,041 followed by 81,169, while resistance levels are seen at 84,860 and 85,732. Sustaining above current levels could pave the way for a gradual move toward the upper resistance band, while a breach of support may invite profit booking and short-term weakness.