Market Wrap

The benchmark Nifty extended its post-policy strength on Friday, climbing nearly 0.59% to finish just below the 26,200 mark. Sentiment improved significantly after the RBI’s dovish tone and its clearer roadmap on the inflation trajectory, helping the index sustain firmly above the 26,000–26,100 support zone and giving bulls a decisive upper hand.

Broader markets outperformed, with the Nifty Midcap Index rebounding sharply from its recent swing low and reclaiming the 20-DEMA. A strong bullish candlestick formation indicates that momentum in midcaps could continue in the near term.

Across global markets, Europe traded comfortably in the green, reinforcing risk-on sentiment. Meanwhile, newly announced India–Russia trade agreements set a positive backdrop for defence, energy, and commodity-related sectors. Derivative data also favored the bullish camp, with heavy put writing at multiple key strikes reflecting traders’ confidence in near-term stability.

On the macro front, weaker-than-expected U.S. payroll data increased the likelihood of a more accommodative Federal Reserve stance next week, supporting flows toward emerging markets. Additionally, a 1% drop in crude oil prices eased external pressures for India and strengthened domestic equity sentiment.

What's Ahead

Markets will turn their attention to a series of global and domestic catalysts next week. Japan’s Q3 GDP data on Monday and the U.S. Federal Reserve policy decision on 10 December could influence global risk appetite and trigger short-term volatility.

Back home, investors will closely monitor India’s CPI inflation print, which will be key in assessing the durability of the RBI’s positive guidance.

Technically, Nifty holds immediate support at 26,080 and 26,000, while resistance lies at 26,245, 26,325, and 26,400. As long as the index stays above the 26,000 mark, the short-term bias remains firmly bullish.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its post-policy uptrend, gaining 152.70 points to close at 26,186.45, supported by strong traction in financials, autos, and heavyweights such as Reliance, ICICI Bank, and HDFC Bank. The index registered a healthy trading range, rebounding from the day’s low of 25,985 and inching close to its intraday high of 26,202. Advancers outnumbered decliners 38:12, underscoring strong market breadth, while leaders like Shriram Finance, SBI, Bajaj Finserv, and Adani Enterprises powered the rally. Technically, the RSI has moved closer to the 60 zone, signalling improving bullish momentum after reclaiming key support zones. Immediate support is placed at 26,082/26,012, while resistance levels at 26,310/26,380 will be watched for potential breakout continuation.

Bank Nifty

Bank Nifty delivered a robust 0.82% gain to close at 59,777.20, with all 12 constituents finishing in the green—a clear indication of broad-based strength within the banking pack. The index held firm after a muted open and surged toward its intraday high of 59,806, led by strong PSU Bank participation from SBI, PNB, and Bank of Baroda, while major private lenders like Kotak, HDFC Bank, ICICI Bank, and Axis offered steady support. The RSI now approaching 70 reflects heightened bullish momentum, with the index comfortably holding above recent consolidation levels. Key support lies at 59,432/59,218, while resistance at 60,123/60,337 could determine whether Bank Nifty enters a fresh breakout phase.

Nifty Financial Services

FINNIFTY ended nearly 1% higher at 27,881.90, driven by strong participation from NBFC names including SBICARD, Chola Finance, Shriram Finance, and Muthoot Finance, complemented by gains in heavyweights like Bajaj Finance, Bajaj Finserv, and Kotak Bank. With 18 out of 20 stocks advancing, the index displayed clear breadth confirmation, signalling sustained strength across the broader financial space. The structure remains bullish as the index continues to hold above short-term moving averages, supported by strong rotational flows into lenders and NBFCs. Immediate support stands at 27,720/27,618, while resistance at 28,048/28,149 will determine if the index can extend its upward trajectory next week.

Sensex

The SENSEX added 447 points to close at 85,712.37, maintaining its steady uptrend with financials, autos, and IT aiding the momentum. SBI, Bajaj Finserv, Bajaj Finance, Maruti, and HCL Tech were among the top contributors, offsetting weakness in defensives like Hindustan Unilever and pharma names. The index respected key intraday supports and moved closer to testing upper resistance levels, reflecting a stable bullish structure. Market breadth remained positive (24:6), further validating the momentum. Technically, supports are placed at 85,306/85,060, while resistance zones at 86,099/86,344 will be crucial for the index’s next directional move.