Market Wrap

Indian equities wrapped up last week on a positive note, with the Nifty gaining 1.29% (+314 points) to close just above the 24,700 mark after briefly testing 24,980. The rally following the GST Council’s decisions quickly fizzled into a sell-on-news reaction, capping further upside. Auto stocks remained the standout performers, surging nearly 6% and continuing to outperform the broader market. Globally, sentiment stayed constructive, with US indices trading mixed while Asian and European markets posted modest gains. On the macro front, India’s August services PMI came in strong at 61.2, underscoring resilience in domestic demand and Q2FY26 earnings potential. Meanwhile, crude oil prices eased slightly as OPEC+ signaled vigilance over slowing demand, and geopolitical moves by Trump kept global investors watchful.

What's Ahead

With India VIX at a low 10.78, volatility remains subdued, pointing to range-bound trade in the near term. Nifty faces immediate support at 24,700–24,650–24,600 and resistance at 24,810–24,840–24,885. This week is packed with key macro triggers, including CPI inflation prints from India and the US, along with GDP data from Japan and the UK. These data points are likely to shape foreign fund flows, sector rotation, and overall market momentum.

Market Snapshots

Institiutional Activity

Sectoral Performance

Technical Outlook

Nifty 50

The NIFTY 50 index ended flat with a marginal gain of 6.7 points at 24,741, closing just above key support levels after a volatile session. The index traded in negative territory for much of the day but recovered in the afternoon, supported by strength in auto and pharma stocks. Eicher Motors, M&M, and Maruti Suzuki were standout performers, while heavy selling in IT majors like TCS, Tech Mahindra, and HCL Tech capped upside momentum. Sectoral performance was mixed, with IT, FMCG, and realty indices each slipping around 1%, while autos surged 1.25%, aided by optimism over GST benefits. The rupee’s slide to 88.25 against the dollar added a cautious undertone. For now, Nifty holds above 24,700, with near-term support at 24,564 and 24,455, while resistance is seen at 24,918 and 25,027.

Bank Nifty

The NIFTY BANK index closed almost flat at 54,075.45, up just 7.9 points (0.01%), as sectoral weakness offset gains in HDFC Bank, ICICI Bank, and IDFC First Bank. Despite holding above the psychologically important 54,000 mark, nine of its twelve constituents closed lower, with Federal Bank, IndusInd Bank, and Canara Bank dragging sentiment. The index opened firm but slipped intraday, indicating persistent caution. Momentum remains weak, with RSI below 40, signaling a lack of buying strength. Key support is seen at 53,463 and 53,084, while resistance is placed at 54,668 and 55,067.

Sensex

The SENSEX closed 150.3 points higher at 80,718.01, up 0.19%, but the gains were narrow, driven largely by strong moves in M&M, Bajaj Finance, and HDFC Bank. Broader market sentiment was weak, with 19 of 30 constituents closing in the red. Selling pressure was evident in Reliance, Infosys, NTPC, Power Grid, and Maruti, limiting upside potential. The index’s resilience was supported by select heavyweights, though overall market breadth remains negative. Near-term support levels are pegged at 80,131 and 79,769, while resistance is seen at 81,305 and 81,667.

FINNIFTY

The NIFTY FINANCIAL SERVICES index rose 121 points (0.47%) to settle at 25,853.4, supported by strong buying in Bajaj Finance and ICICI General Insurance. However, breadth within the index was weak, with 12 out of 20 stocks declining, reflecting continued caution in financial names. Losses in HDFC Life and Power Finance Corporation capped gains. Despite this, the index has managed to hold above key support levels, suggesting selective accumulation. Overall, sentiment in financials remains mixed, with investors rotating into select outperformers rather than broad-based buying.