Market Wrap

Indian equity markets wrapped up the shortened trading week on a muted note, mirroring persistent indecision among investors. The Nifty50 spent most of the week oscillating between its 50-day and 100-day EMAs, marked by sharp intraday volatility but no clear directional breakout. The index eventually closed just below the 25,700 level, managing a marginal weekly gain of 0.04%.

Despite sporadic support from heavyweight stocks, the market struggled to sustain moves above the crucial 25,900 resistance zone, indicating a lack of follow-through buying. Sectoral action remained selective—IT stocks staged a visible rebound, while broader market participation stayed subdued. Mid- and small-cap stocks failed to gain traction, reinforcing the sideways bias.

Global cues offered little support, with Asian and European markets trading mixed throughout the week. In the absence of strong external triggers, domestic equities remained confined to a narrow band, suggesting the market is consolidating after recent swings, with bulls and bears evenly matched near key technical levels.

What's Ahead

The coming week marks a potentially decisive phase for the market as the Q3 earnings season gathers momentum. Results from heavyweight companies such as Reliance Industries, HDFC Bank, and ICICI Bank will be critical in shaping near-term sentiment and direction.

From a technical standpoint, the Nifty continues to remain locked in a well-defined range of 25,473–25,899. Strong call writing at the 25,800–26,000 strikes signals stiff resistance on the upside, while immediate support lies in the 25,500–25,600 zone. A decisive breakout above resistance, backed by strong volumes, is needed to revive bullish momentum. Until then, consolidation is likely to persist.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 ended marginally higher at 25,694.35, supported by a sharp rebound in IT heavyweights, though broader market participation remained weak. The index traded within a defined intraday range, indicating cautious sentiment as profit booking capped gains near higher levels. Technically, the index continues to hover below key resistance zones, with momentum still tentative. The RSI remains near the 40 mark, suggesting a fragile recovery rather than a decisive trend reversal. As long as NIFTY sustains above the 25,480–25,348 support band, downside risk remains limited; however, a clear breakout above 25,904–26,036 is required to revive bullish momentum. Until then, range-bound consolidation with stock-specific action is likely to persist.

Bank Nifty

The NIFTY BANK outperformed, closing at 60,095.15 with strong intraday buying and a higher high–higher low formation. The index is comfortably trading above its 20-day EMA, reinforcing a positive short-term trend. The RSI has moved sharply above 60, reflecting strengthening bullish momentum and improving risk appetite within banking stocks. Immediate support is placed at 59,694–59,446, which is expected to act as a strong base on declines. On the upside, a sustained move above the 60,496–60,744 resistance zone could open the door for further upside, keeping the overall bias positive in the near term.

Nifty Financial Services

The NIFTY FINANCIAL SERVICES index closed marginally higher at 27,523.15, indicating consolidation after recent moves. Selective buying in lenders and NBFCs provided support, while weakness in a few heavyweights capped upside. Technically, the index is trading in a narrow range, reflecting indecision among participants. As long as it holds above the 27,341–27,226 support zone, the structure remains stable. A decisive breakout above the 27,716–27,831 resistance band is required to trigger fresh upside momentum; until then, sideways movement with stock-specific trends is likely to dominate.

Sensex

The BSE SENSEX closed at 83,570.35, supported primarily by strong gains in IT stocks, while broader weakness limited the upside. The index continues to face selling pressure near higher levels, suggesting a lack of sustained buying interest. Technically, the trend remains neutral to mildly positive as long as the SENSEX holds above the 82,843–82,402 support zone. A decisive move above the 84,269–84,711 resistance range is needed to confirm a bullish continuation. Until such a breakout occurs, the index may continue to consolidate with heightened volatility and selective sectoral participation.