Market Wrap

Indian equities started the week on a strong footing, with the Nifty once again attempting to scale fresh highs near the 26,100 mark. However, profit booking set in toward the weekend, dragging the index lower by 0.31% for the week to close slightly above 25,700. Sectorally, PSU banks emerged as the standout performers, rallying nearly 5% and breaking past previous all-time highs, fueled by robust Q2 earnings and sustained optimism over credit growth. In contrast, broader market sentiment was tempered by mixed global cues. U.S. markets ended in the red on renewed uncertainty surrounding the Federal Reserve’s rate outlook, while Asian and European indices also closed lower. On the commodities front, crude oil slipped below $82 per barrel amid demand concerns, even as gold prices held firm on safe-haven buying. The Indian rupee remained stable, supported by steady foreign inflows, particularly into banking and auto stocks.

What's Ahead

Markets are likely to remain range-bound in the coming sessions as investors digest the latest batch of Q2 earnings and await policy signals from key central bank meetings. The direction of global bond yields and updates from the upcoming U.S.–China trade dialogue will be crucial for near-term sentiment. Domestically, PSU banks and auto stocks may continue to attract investor interest, while volatility could inch higher ahead of India’s services PMI and U.S. non-farm payroll data later this week.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 index fell 0.6% to close at 25,722.1, as selling pressure persisted across sectors with 41 of its 50 constituents ending in the red. Heavyweights such as HDFC Bank, ICICI Bank, and Infosys led the decline, collectively dragging the index lower, while select gainers like BEL, Eicher Motors, and Shriram Finance provided limited support. The index opened firm but quickly lost steam after testing an intraday high of 25,953.75, slipping steadily to end near the day’s low. Sentiment weakened amid renewed FII outflows and a hawkish undertone in the U.S. Federal Reserve’s rate commentary, coupled with the lack of progress in U.S.–China trade talks. The RSI dipping below 60 signals fading bullish momentum, suggesting possible consolidation or further downside in the near term. Immediate support is seen at 25,476 and 25,323, while resistance lies at 25,968 and 26,121.

Bank Nifty

The Bank Nifty index declined 254.75 points, or 0.44%, to close at 57,776.35, as cautious sentiment dominated banking counters. Despite early gains led by IDFC First Bank, Canara Bank, and PNB, profit booking in index heavyweights HDFC Bank and ICICI Bank offset the positive bias. The index opened on a firm note and briefly touched 58,254.95 before retreating sharply to an intraday low of 57,656.95. Although PSU banks continued to show resilience, private sector majors faced renewed selling pressure amid weak global cues. RSI readings near 60 indicate moderate bullish strength but hint at waning momentum. Near-term support is positioned at 57,222 and 56,880, while resistance levels are seen at 58,330 and 58,673.

Sensex

The Sensex fell 465.75 points, or 0.55%, to close at 83,938.71, marking a weak start to the week as profit-taking dominated across most heavyweights. With 25 of the 30 constituents closing lower, the index’s decline was driven primarily by financial majors like HDFC Bank, ICICI Bank, and Kotak Bank. However, select gainers such as BEL, Larsen & Toubro, TCS, and ITC helped limit deeper losses. The index traded within a narrow range, reflecting caution ahead of key macroeconomic data releases. Technically, the trend remains mildly negative, with near-term support at 83,111 and 82,599, while resistance is seen at 84,766 and 85,278.

FINNIFTY

The Nifty Financial Services index dropped 237.15 points, or 0.87%, to settle at 27,138.85, extending losses as financial heavyweights remained under pressure. HDFC Bank, ICICI Bank, and Kotak Bank were the major drags, collectively weighing on the broader financial space. While Shriram Finance and SBI offered minor support, overall market breadth was decisively negative, with 16 of 20 constituents ending lower. The sharp fall indicates that traders are booking profits after recent gains in financials. Near-term support is placed at 26,883 and 26,725, whereas resistance is capped at 27,395 and 27,553.