Market Wrap

Indian equities extended their cautious trend, with the Nifty50 declining 0.31% for the week to 24,175, after Thursday's session saw a sharp reversal from an early gap-up opening. The index opened nearly 70 points higher at 24,278, supported by strong global cues following Nvidia's earnings and softer crude prices, but gains were quickly sold into. The Nifty eventually slipped to 24,090.85, highlighting persistent selling pressure and weak market participation.

HDFC Bank was a major source of pressure, with the stock coming under heavy selling following reports of a U.S. class-action lawsuit and renewed uncertainty around CEO Sashidhar Jagdishan's tenure. The weakness in the heavyweight added to pressure on the benchmark and reinforced the market's sensitivity to stock-specific developments.

The broader trend remained mixed. IT stocks stood out as the strongest pocket, with all five of the week's top Nifty50 gainers coming from the sector. Nvidia's Q2 revenue of $96.2 billion and its upbeat $108 billion Q3 revenue outlook further strengthened the global AI investment narrative, potentially supporting Indian IT and technology-linked stocks.

At the macro level, softer crude prices remain a positive for India, particularly if expectations of progress in talks involving Iran and Oman help ease concerns around the Strait of Hormuz. However, elevated U.S. bond yields, higher U.S. tariffs on Indian exports and cautious FII flows continue to weigh on sentiment. India's stronger-than-expected Q1 GDP growth provides a solid domestic fundamental backdrop, but investors will increasingly look for evidence of this strength translating into corporate earnings.

What's Ahead

The market enters the next session with 24,100 as an important near-term zone for the Nifty. Sustaining above this area could encourage fresh buying and allow the index to attempt a recovery, while a decisive break below recent support could trigger another round of profit-booking.

The immediate focus will remain on HDFC Bank, IT stocks and broader market participation. Globally, Nvidia-led technology strength could provide some support, while U.S. bond yields and developments around U.S.–India trade relations remain key risks.

Investors will also track FII flows, the rupee, crude oil prices and upcoming domestic economic data. With broader markets showing signs of weakness and the Nifty below its short- and medium-term EMA cluster, the near-term setup remains cautious. A return of institutional buying could stabilize the market, but until then, stock-specific moves are likely to dominate.

Market Snapshots

Institutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 gained 84.80 points, or 0.35%, to close at 24,175.65, snapping a two-session losing streak as strong buying in IT stocks lifted the benchmark. The index opened at 24,122.60, tested a low of 24,076.85 and moved up to 24,188.30 before closing near the day's high, indicating improving buying interest. The RSI has moved towards the 50 level, pointing to a shift towards neutral momentum. Market breadth was positive, with 30 stocks advancing against 19 declining. The index has near-term support at 24,046 and 23,965, while 24,306 and 24,386 remain the key resistance levels. A sustained move above 24,306 could strengthen the recovery, while a break below 23,965 would weaken the near-term setup.

BankNifty

The NIFTY Bank ended almost flat, slipping 13.65 points, or 0.02%, to 57,496.30 after a volatile session. The index opened at 57,429.75, fell to 57,264.00 and recovered to an intraday high of 57,596.40, closing well off the day's low. Mixed performance among private and PSU lenders kept the index directionless, while breadth remained slightly negative at six advancing stocks against seven declining. The RSI continues to hover around the 50 level, indicating neutral momentum and a lack of a clear directional trend. Immediate support is placed at 57,258 and 57,110, while resistance is seen at 57,735 and 57,882. A decisive move beyond this range would likely provide the next directional signal.

NIFTY FINANCIAL SERVICES

The NIFTY Financial Services index edged up just 5.85 points, or 0.02%, to close at 26,286.50, but the marginal gain masked weak underlying breadth, with only six stocks advancing against 13 declining. The index remained range-bound during the session, while the RSI setup suggests that momentum is still lacking a strong directional bias. Financial stocks continued to see selective selling, particularly in ICICI Group names and NBFCs, limiting the index's upside despite gains in HDFC Bank, Axis Bank and SBI. Near-term support is placed at 26,148 and 26,063, while 26,425 and 26,510 are the key resistance levels. The index would need to sustain above 26,425 to signal stronger upside momentum, while a break below 26,063 could invite further weakness.

Sensex

The BSE SENSEX advanced 330.92 points, or 0.43%, to close at 77,264.51, supported by strong gains in technology stocks and buying across several heavyweight constituents. The index opened at 76,985.77, moved to an intraday low of 76,841.46 and climbed to a high of 77,342.53 before ending near the upper end of the day's range. Market breadth was firmly positive, with 19 stocks advancing against 10 declining, reinforcing the constructive tone. Near-term support is placed at 76,866 and 76,620, while resistance levels stand at 77,663 and 77,909. A sustained breakout above 77,663 could extend the recovery, whereas failure to hold 76,866 would keep the index vulnerable to renewed selling.