Market Wrap

Indian equities closed the week on a stronger footing after an eventful stretch of trading. The Nifty started the week under pressure, briefly testing the crucial 25,700 support zone. However, sustained buying at lower levels helped the index defend this base convincingly. Momentum gradually improved through the week, culminating in a strong gap-up opening on Friday. The benchmark maintained its upward trajectory throughout the session and ended with a gain of 0.57%, settling just below the 26,050 mark signalling a short-term sentiment shift in favour of the bulls.

Broader market participation remained healthy despite some consolidation in frontline indices. Metal stocks emerged as clear outperformers, with the sectoral index surging nearly 2.5%, supported by firm global commodity prices and improving demand expectations.

On the global front, US markets closed mixed overnight, but broader risk appetite remained intact. Asian and European markets traded with notable gains, reflecting improving global sentiment. Stability in global bond yields, easing fears of aggressive monetary tightening, steady commodity prices, and expectations of year-end institutional positioning collectively provided support to domestic equities.

What's Ahead

Markets will look to upcoming global macro cues, particularly US inflation data and central bank commentary, which could influence near-term risk appetite. Domestically, investors will closely monitor sector-specific flows especially in metals and broader markets while assessing whether Nifty can sustain above the critical 25,900–26,000 zone. Developments related to global growth outlook, commodity trends, and institutional flows are likely to play a decisive role in shaping market direction in the coming sessions.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 extended its recovery for a second consecutive session, closing near the day’s high at 26,046.95 after decisively reclaiming the 20-day EMA, which marks a positive short-term technical development. The index formed a higher high–higher low structure, supported by strong participation from metals, financials, and key heavyweights, while market breadth remained firmly positive. Momentum indicators are improving, with RSI advancing toward the 55 zone, signalling a gradual shift back in favour of the bulls. As long as the index holds above the 25,900–25,800 support band, the bias remains positive, with upside potential toward 26,194 and 26,287. A sustained move above resistance could open the door for further continuation, while a breach of supports may invite short-term consolidation.

Bank Nifty

The NIFTY BANK posted a modest gain to close at 59,389.95, maintaining its position above the 20-day EMA and indicating stability after recent softness. The index showed intraday resilience, recovering from lower levels, while RSI hovering near 60 reflects steady, but not overstretched, momentum. Select private banks led the advance, keeping the broader structure constructive. Near-term support is placed at 59,067 followed by 58,867, which should act as a cushion on declines. On the upside, a decisive breakout above 59,713 could accelerate momentum toward the 59,913 zone, while failure to cross resistance may result in range-bound trade.

Nifty Financial Services

FINNIFTY closed higher at 27,672.60, supported by broad-based buying across NBFCs, insurers, and select banks, reflecting underlying strength in the financial space. The index continues to trade with a positive bias, holding above key short-term averages, while favourable breadth reinforces the bullish undertone. Momentum remains stable, suggesting potential for further upside if follow-through buying emerges. Immediate support is seen at 27,497 and 27,393, while resistance is placed at 27,836 and 27,941. A breakout above the upper resistance zone could pave the way for a fresh leg higher, whereas a dip toward supports may attract buying interest.

Sensex

The BSE SENSEX ended at 85,267.66, forming a strong bullish candle as cyclical and metal stocks led the advance, supported by healthy participation from large-cap names. The index continues to trade above its short-term support levels, indicating that dips are being bought into. The overall structure remains constructive, with positive breadth and improving momentum suggesting scope for further upside. Immediate support is located at 84,802 and 84,508, while resistance is seen at 85,750 followed by 86,043. Sustaining above current levels could keep the upward bias intact, though some consolidation near resistance cannot be ruled out.