Market Wrap

Indian equities began the truncated week on a strong footing, with the Nifty50 climbing over 0.50% to close near 25,850. The market’s tone remained constructive despite mild intraday volatility, supported by strength in banking and energy names. PSU banks led the charge as improving liquidity conditions and continued institutional buying fueled the rally, while energy counters also saw steady accumulation. Global cues were positive Asian markets traded higher, tracking Wall Street’s tech-led surge, with the NASDAQ rallying on robust earnings. Crude oil prices eased after OPEC+ reaffirmed its production stance, providing respite to inflation-sensitive sectors such as logistics and FMCG. Adding to the optimism, the government’s plan to fast-track disinvestment in FY26 boosted sentiment in PSU-linked counters, while falling US bond yields encouraged foreign inflows into emerging markets like India.

What's Ahead

The Nifty now faces immediate resistance in the 25,950–26,000 range, a zone that could determine the next leg of the rally. Sustained momentum in PSU banks and auto stocks may help propel indices toward new highs; however, traders are likely to stay cautious ahead of the upcoming Q2 earnings season and the European Central Bank’s policy review later this week. Both events could influence global risk appetite and dictate short-term FII flows into Indian equities.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The Nifty 50 extended its winning streak, climbing 133.3 points or 0.52% to close at 25,843.15, supported by a broad-based rally. Market sentiment was buoyant, with 34 stocks advancing against 16 declines, led by heavyweights such as Reliance Industries (+3.53%) and Axis Bank (+2.15%). Strong buying in Cipla (+3.90%) and Shriram Finance (+2.73%) also added momentum, although weakness in ICICI Bank (-3.22%), M&M (-1.32%), and JSW Steel (-1.56%) capped the index’s upside. The index traded with positive bias throughout the session, rebounding smartly from an intraday low of 25,788.5 to a high of 25,926.2 before settling near the day’s top. Technically, the RSI hovering around 70 indicates near-overbought conditions, suggesting the need for some consolidation. Immediate support lies at 25,527 and 25,332, while resistance is seen at 26,159 and 26,354.

Bank Nifty

The Bank Nifty gained 0.55% to close at 58,033.20, lifted by strong buying across both private and PSU banks. Out of 12 constituents, 11 ended in the green, signaling broad-based strength. Mid-tier lenders like AU Bank, IDFC First Bank, and Federal Bank outperformed, while Axis Bank and SBI also lent significant support. ICICI Bank, however, remained the notable laggard with a sharp 3.22% decline following muted quarterly numbers. The index traded in a narrow range, oscillating between 57,872.85 and 58,261.55, reflecting a steady yet cautious uptrend. With RSI near 70, momentum appears stretched, suggesting the possibility of a short-term pause or mild correction. Key support levels are placed at 57,146 and 56,597, whereas resistance is seen at 58,920 and 59,469.

Sensex

The Sensex advanced 411.18 points or 0.49% to settle at 84,363.37, extending its upward trajectory amid positive global and domestic cues. The rally was powered by Reliance Industries, Bajaj Finance, and Axis Bank, which offset losses in ICICI Bank (-3.22%), M&M, and Power Grid. Out of 30 constituents, 19 closed in the green, underscoring resilient breadth. The index moved steadily higher through the session and closed near its day’s high, reflecting strong underlying momentum. Immediate support is seen at 83,303 and 82,648, while resistance levels are pegged at 85,423 and 86,079.

FINNIFTY

The Nifty Financial Services index underperformed, slipping 0.12% to close at 27,505.50 amid weakness in ICICI Bank (-3.22%), which dragged the index lower. However, strength in Shriram Finance, Bajaj Finserv, Axis Bank, and SBI helped cushion the fall, while HDFC Bank’s stability provided balance. Despite the marginal dip, market breadth was constructive, with 16 of 20 constituents ending higher. The index remains in a consolidation phase after a sharp recent run-up. Near-term support lies at 27,092 and 26,836, while resistance is positioned at 27,919 and 28,175.