The Indian equity market is expected to begin the week on a cautiously positive note, supported by improving technical indicators and sustained buying interest at lower levels. Although global markets remain mixed amid concerns over elevated crude oil prices and geopolitical developments, the domestic market continues to display resilience, backed by strong domestic institutional inflows and improving investor sentiment.
Market participants are likely to closely monitor foreign institutional investor (FII) activity, global market trends, crude oil prices, currency movements, and developments related to global trade and geopolitics, as these factors are expected to influence market sentiment during the week. The ongoing earnings season and company-specific announcements may also result in increased stock-specific volatility.
Overall, the broader market structure remains constructive. As long as the Nifty sustains above 23,770, any short-term decline is likely to attract buying interest. Traders may continue to adopt a 'buy on dips' strategy with appropriate risk management, while investors can maintain a positive medium-term outlook. A decisive move above 24,575 on the Nifty would confirm the next leg of the ongoing bullish trend.
Indian equity markets ended the week on a positive note, supported by renewed buying interest at lower levels. The BSE Sensex gained 0.75 percent to close at 78,151.45, while the Nifty 50 advanced 0.50 percent to settle at 24,334.30. The Bank Nifty outperformed the benchmark indices, rising 0.80 percent to close at 58,521.40, driven by selective buying in banking and financial stocks.
Among the sectoral indices, IT, Media, Private Banks and Auto emerged as the top gainers, while Realty, Metals, FMCG and Pharma witnessed profit booking and ended the week in the red.
During the week, the Nifty opened on a positive note at 24,039.00 and slipped to a weekly low of 24,000.20 in the initial sessions. After consolidating for three consecutive trading days, the index regained momentum and rallied to a weekly high of 24,367.30 on Friday before settling at 24,334.30, reflecting sustained buying interest at lower levels.
From a technical perspective, the Nifty continues to trade above its key short-term moving averages on both the daily and weekly charts, indicating that the broader trend remains positive. Momentum indicators also continue to support the medium-term bullish outlook. The formation of a bullish candlestick on the weekly chart, coupled with a higher weekly close, signals continued buying interest and strengthens the positive market structure.
The 23,770 level remains the key support for the index. As long as the Nifty sustains above this level, the medium-term uptrend is expected to remain intact. On the upside, 24,575 is the immediate resistance. A decisive breakout above this level could trigger fresh buying momentum and open the door for a rally towards 25,200. Until then, the index is likely to consolidate within a broad trading range while maintaining a positive bias.
The Bank Nifty closed the week at 58,521.40, registering a gain of 0.80 percent, reflecting sustained buying interest in banking stocks. The index continues to trade above its key short-term moving averages on both the daily and weekly charts, while momentum indicators remain firmly positive, suggesting that the prevailing bullish trend is likely to continue.
Technically, the index formed a bullish candlestick on the weekly chart and closed above the highs of the previous few weeks, indicating strengthening upward momentum. Immediate resistance is placed around 58,700. A sustained close above this level would confirm a continuation of the bullish trend and could lead to further upside. However, failure to break above 58,700 may result in a period of consolidation. On the downside, 57,000 remains a strong support level and is expected to provide a solid base for the ongoing medium-term uptrend.
The BSE Sensex ended the week at 78,151.45, gaining 0.75 percent, reflecting improving market sentiment and sustained buying interest.
Technical indicators on both the daily and weekly charts continue to exhibit a constructive bias, suggesting that the broader market trend remains positive. Immediate support is placed near 76,000, and as long as the index holds above this level, the prevailing bullish momentum is expected to continue.
On the upside, 78,500 remains the immediate resistance. A decisive close above this level would reinforce the bullish outlook and could trigger the next leg of the uptrend in the coming weeks. However, if the index fails to surpass this resistance, it may continue to consolidate within the current trading range before making its next directional move.
Note: Research support for this article was provided by Research Desk, MyEquityLab.com, a SEBI-registered Research Analyst (Registration No. INH000023843).
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice or a recommendation to buy or sell any security. Readers are advised to consult a qualified financial adviser and conduct their own due diligence before making any investment decisions.
