Market Wrap

Indian equity markets staged a strong comeback on Friday, with benchmark indices opening on a gap-up note and sustaining gains through most of the session. The Nifty 50 rallied nearly 550 points intraday before witnessing mild profit booking in the final hour, eventually closing around the 23,300 mark-up 1.72%.

The rally was broad-based, driven by improving global sentiment and renewed domestic buying interest. Market breadth remained positive, indicating strong participation across sectors.

A key highlight of the session was the outperformance in PSU banks. The Nifty PSU Bank Index showed strong traction, forming a bullish island reversal pattern near crucial support levels. This was further reinforced by a positive RSI crossover, signaling potential continuation of upward momentum in the near term.

Global cues played a supportive role, with Asian and European markets witnessing broad-based buying. Easing concerns around global inflation and rising expectations of a more accommodative stance from major central banks boosted overall risk appetite.

On the domestic front, steady macroeconomic indicators and continued participation from DIIs helped anchor market stability, despite intermittent profit booking at higher levels.

What's Ahead

The near-term outlook remains constructive, but sustainability of the rally will hinge on follow-through buying.

• Global Triggers: Investors will closely monitor upcoming macro data, central bank commentary, and crude oil price movements.

• Institutional Flows: Sustained DII support and any shift in FII activity will be critical for momentum.

• Sector Rotation: PSU banks and rate-sensitive sectors could remain in focus if the current trend sustains.

• Earnings Season Watch: Early signals from the upcoming quarterly results may start shaping market direction.

While sentiment has turned positive, markets may remain selective and data-dependent, making stock-specific strategies increasingly important.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 extended its recovery for the second consecutive session, forming a strong bullish candle after a gap-up opening, indicating sustained buying interest at lower levels. The index is gradually moving higher after defending key support zones, while improving market breadth and sectoral participation suggest strengthening momentum. The RSI is trending upward toward the 40 mark, signaling a recovery phase, although it still remains below the bullish zone—implying room for further upside. As long as the index holds above the immediate support of 22,780, the bias remains positive, with a potential move toward 23,833 and 24,158 in the near term. However, any failure to sustain above current levels could trigger consolidation or mild profit booking.

Bank Nifty

Nifty Bank continued its strong upward trajectory, supported by broad-based buying across PSU and private banking stocks, forming a bullish structure on the daily chart. The index maintained higher highs and higher lows throughout the session, reflecting sustained strength and institutional participation. Momentum indicators are improving, with RSI moving sharply toward 40, indicating a gradual revival in buying interest. If the index sustains above the 53,000 zone, it is likely to extend gains toward immediate resistance levels of 55,474 and 56,567. On the downside, key support is placed at 51,942, below which the trend could weaken, but the current setup favors a buy-on-dips approach.

Nifty Financial Services

Nifty Financial Services witnessed a strong breakout-like move, supported by robust participation across NBFCs, housing finance, and insurance stocks, indicating a shift in momentum within the financial space. The index is showing signs of accumulation with consistent higher closes and strong breadth, suggesting underlying strength. Momentum indicators are turning favorable, reinforcing the bullish bias in the near term. As long as the index sustains above its immediate support zone, the uptrend is likely to continue toward higher resistance levels. The overall structure indicates that dips may be used as buying opportunities, with leadership from NBFCs expected to persist.

Sensex

Sensex mirrored the broader market strength, closing with a strong bullish candle backed by widespread sectoral participation, particularly in industrials, metals, and discretionary stocks. The index is recovering steadily after recent consolidation, with price action indicating a potential continuation of the uptrend. Improving RSI and positive market breadth support the bullish outlook, suggesting strengthening momentum. Immediate resistance is placed at 76,971, and a sustained move above this level could open the path toward 78,022. On the downside, key support lies at 73,576, which is likely to act as a cushion in case of any near-term volatility.