Indian equities ended sharply higher on Friday, April 10, capping a strong recovery and helping the market post its best weekly performance in over five years. The rally was driven by strong buying in financial stocks, supportive global cues, and easing concerns around crude oil prices following developments in the US–Iran ceasefire.
The Sensex surged around 900 points to close at 77,550, while the Nifty 50 rose 1.16 percent to settle at 24,050, reclaiming the crucial 24,000 mark. For the week, benchmark indices gained nearly 6 percent, snapping a six-week losing streak.
The upmove was led by banking and financial stocks, which saw sustained buying interest throughout the session. Heavyweight lenders powered the indices higher, while gains in auto and capital goods stocks added to the momentum.
The rally was broad-based, with buying visible across sectors. Mid cap and small cap stocks also outperformed during the week, reflecting improved risk appetite.
Positive global signals supported sentiment, as markets responded to a temporary easing of geopolitical tensions following the US–Iran ceasefire. A sharp correction in crude oil prices earlier in the week provided relief to equity markets, particularly for energy-importing economies like India.
However, the situation remains fluid. Uncertainty over the durability of the ceasefire and the reopening of the Strait of Hormuz continues to keep investors cautious. Oil price volatility remains a key risk for inflation and corporate earnings.
The rupee appreciated by 10 paise to close at 92.41 against the US dollar, supported by improved sentiment and equity inflows.
Persistent selling by foreign portfolio investors continues to weigh on sentiment. So far this year, FPI outflows from Indian equities have reached ₹1,77,271 crore, reflecting a shift towards other Asian markets with relatively better near-term earnings prospects.
Technical indicators suggest that while the market structure is improving, bullish momentum remains moderate. The 25,000 level aligns with the 200-day moving average, making it a strong resistance zone where selling pressure could emerge.
The recent breakout from the lower high–lower low pattern points to a recovery, but the absence of strong follow-through buying raises the risk of the upmove losing steam near higher levels.
Immediate resistance: 24,300–24,500
Major resistance: 25,000
Immediate support: 23,700–23,600
Strong support: 23,400–23,300
While the sharp weekly gains signal improving sentiment, markets remain sensitive to global developments, especially crude oil trends and geopolitical tensions. A decisive breakout above key resistance levels is needed for the next leg of the rally. Until then, the Nifty 50 is likely to remain range-bound with a cautious undertone.