Indian equities ended the past week with healthy gains despite intermittent profit booking, as strong domestic institutional inflows and improving investor sentiment outweighed concerns over global uncertainties. The Nifty closed above the key 24,000 mark, while banking stocks continued to provide support to the broader market.
This week is expected to see a cautiously positive trend, with investors closely tracking global developments, crude oil prices and foreign fund flows. Stability in the Middle East has helped ease concerns over energy supplies, although any fresh geopolitical tensions could trigger short-term volatility.
The benchmark indices posted solid gains during the week.
Sensex rose 1.69 percent to close at 76,802.90
Nifty 50 gained 1.70 percent to end at 24,013.10
Bank Nifty advanced 1.50 percent to 57,685.80
Among sectoral indices, Realty, PSU Banks, Financial Services and Media emerged as the strongest performers. Information Technology stocks lagged the market as investors booked profits following the sector's recent outperformance.
The Nifty touched a weekly high of 24,189.20 before witnessing mild selling pressure towards the end of the week. However, the index managed to retain most of its gains, indicating that the underlying trend remains positive.
The 24,000 level remains the most important support zone for the market. The index continues to trade above key short-term averages, suggesting that buyers remain in control.
If Nifty sustains above 24,000, the index could gradually move towards 24,500 in the coming sessions. A decisive breakout above that level may open the door for further gains. However, a fall below 24,000 could trigger profit booking and a period of consolidation.
Banking stocks remain one of the market's strongest pillars. Bank Nifty ended the week close to the important resistance zone of 57,800.
A sustained move above this level could push the index towards 58,500 and eventually 59,000. On the downside, support is seen near 57,000, followed by 56,500.
The Sensex has strengthened its technical position after closing above the important 76,750 level.
As long as the index remains above this zone, the broader trend is likely to stay positive, with potential targets of 78,000 and 79,750. Any weakness below 76,750 could lead to short-term consolidation before the next directional move.
Movement of crude oil prices
Developments in the Middle East
Foreign and domestic institutional fund flows
Performance of banking and financial stocks
Sustainability of Nifty above the 24,000 mark
The overall market structure remains constructive, with domestic liquidity continuing to support sentiment. While intermittent profit booking is possible after the recent rally, declines are likely to attract buying interest as long as key support levels remain intact.
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 should not be construed as investment advice. Investors should consult qualified financial advisers and conduct their own research before making investment decisions.
