Market Wrap

Nifty kicked off the week on a weaker note, slipping below the 25,850 mark, but the tone quickly shifted as robust mid-week buying pushed the index above 26,300. The momentum faded toward the weekend, with the last two sessions turning subdued. Eventually, Nifty wrapped up the week with modest gains of nearly 0.5%, closing just above 26,200.

Banking stocks continued to shoulder market strength, with Bank Nifty notching its fifth consecutive week of gains - a clear sign of sustained confidence in financials. Globally, however, sentiment remained muted as US markets were closed for Thanksgiving, keeping European and Asian indices largely range-bound.

On the macroeconomic front, India stole the spotlight. GDP growth came in significantly above expectations, underscoring strong domestic demand, resilient manufacturing activity, and ongoing government capex momentum. This upbeat data print is likely to lend support to rate-sensitive and cyclical sectors. Meanwhile, crude prices softened slightly amid renewed worries over global demand recovery, potentially offering relief to sectors like aviation, paints, and FMCG. Foreign fund flows were mixed, though India’s improving macro stability could encourage FIIs to reassess their stance in the near term.

What's Ahead

With US markets set to reopen post-holiday, domestic sentiment will closely track global cues. A sustained cooling in crude prices could further bolster risk appetite. Technically, Nifty’s ability to hold above the 26,000 support zone keeps the setup constructive, and any dips may invite buying interest.

Key triggers to watch next week include:

• Global PMI readings

• Fresh OPEC+ commentary

• India’s upcoming trade balance data

These events could inject short-term volatility into equities and influence FII flows. For now, the 26,150–26,080 band remains a critical near-term support zone.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

Nifty 50 edged lower by 12.60 points to close at 26,202.95 (-0.05%), reflecting mild profit booking and caution ahead of key macro releases. The index traded within a narrow range of 26,172–26,280, with strength in autos and pharma helping limit the downside, while weakness in insurers and select heavyweights capped recovery attempts. Market breadth stayed weak at 19:29, indicating lacklustre participation. The RSI remains steady near 60, signalling that bullish momentum is intact despite the muted close. Immediate supports are placed at 25,996/25,871, while resistance levels stand at 26,403/26,529, suggesting the index may consolidate but remains biased upward as long as it holds the 26,000 zone.

Bank Nifty

Bank Nifty closed almost flat at 59,752.70 (+0.03%), extending its steady uptrend but showing signs of intraday volatility as the index oscillated between 59,598 and 59,897. Gains in mid-tier lenders such as Federal Bank, Bank of Baroda, and Kotak Bank provided support, while selling in heavyweights like HDFC Bank, ICICI Bank and Axis Bank limited the upside. Market breadth was evenly balanced at 6:6, indicating neither bullish nor bearish dominance. The RSI holding near 70 continues to signal strong bullish momentum, though the index may face some resistance from overbought conditions. Key support levels are at 59,209/58,873, while resistances lie at 60,296/60,633, with a breakout above 60,300 likely to extend the ongoing uptrend.

Nifty Financial Services

FINNIFTY slipped 0.20% to close at 27,890.25, dragged lower by weakness in SBILIFE, HDFCLIFE, Shriram Finance and BSE, even as Kotak Bank, Chola Finance and Bajaj Finance attempted to cushion the fall. Market breadth remained firmly negative at 5:15, reflecting broad-based selling pressure across financials. The index now approaches key supports at 27,637/27,483, which will be crucial to defend for maintaining short-term structure, while resistances are placed at 28,133/28,287. Overall momentum remains neutral to slightly weak, with sharp upside likely only if life insurers and NBFCs stabilize.

Sensex

The Sensex ended marginally lower by 13.71 points at 85,706.67 (-0.02%), slipping amid pressure from Power Grid, Bharti Airtel, Eternal, Infosys and Axis Bank, even as gains in M&M, Sun Pharma, Kotak Bank, SBI and HUL helped cushion the decline. Market breadth stayed negative at 12:18, indicating subdued sentiment. The index continues to hover near the upper end of its recent range, with strong support zones at 85,020/84,592, while resistance levels are seen at 86,404/86,832. Momentum remains constructive overall, though the lack of broad-based participation suggests the index may consolidate before attempting another breakout.