Broader markets snapped their two-week winning streak and underperformed the benchmark indices during the holiday-shortened week, as profit booking in select high-beta stocks weighed on sentiment. Despite the Nifty 50 climbing to a more than one-month high, participation in the broader market remained largely stock-specific amid elevated valuations and cautious investor positioning.
The Nifty Midcap 100 and Nifty Smallcap 100 lagged the frontline indices, with the midcap index declining 1 percent during the week, while the smallcap index ended largely flat.
For the week, the BSE Sensex added 297.57 points, or 0.38%, to close at 77,100.47, while the Nifty 50 gained 42.9 points, or 0.17%, to end at 24,056.
Sectorally, the Nifty Pharma index added 2 percent, the Nifty Realty index rose 1.7 percent, Nifty Private Bank and Nifty Auto indices added 1.5 percent each. On the other hand, the Nifty Metal index was the worst hit, down 4.4 percent, the Nifty Consumer Durables down 2.4 percent, Nifty Capital Market and Energy indices shed 2.2 percent each.
The Nifty Midcap 100 index shed 1 percent. National Aluminium Company, GE Vernova T&D India, Hitachi Energy India, Tube Investments of India, KEI Industries, Vodafone Idea, Polycab India, Swiggy, 360 ONE WAM, and Steel Authority of India were among the top losers, falling between 5 percent and 11 percent. On the other hand, Oracle Financial Services Software, Mahindra & Mahindra Financial Services, Bharat Forge, NHPC, Hindustan Petroleum Corporation, and L&T Finance bucked the broader trend, emerging as the top gainers.
Foreign Institutional Investors (FIIs) remained net sellers during the week, offloading equities worth more than ₹2,000 crore. However, the selling was comfortably absorbed by Domestic Institutional Investors (DIIs), who extended their buying streak by purchasing equities worth over ₹11,000 crore, providing a strong cushion to the market.
The total market capitalisation of BSE-listed companies declined by more than ₹2 lakh crore during the holiday-shortened week.
"The Indian equity markets witnessed a volatile trading week, marked by sharp whipsaw movements on both sides during the truncated week. Market sentiment remained influenced by a surge in the US dollar index, easing crude oil prices, and instability from Asian peers, which collectively contributed to heightened volatility. Nevertheless, amid the volatility and sharp swings witnessed throughout, the Nifty50 index ultimately ended on a largely flat note, registering a marginal gain of just 0.18% on a weekly basis to settle slightly above the 24050 level," said Osho Krishan, Chief Manager - Technical & Derivative Research, Angel One.
"From a technical standpoint, the Nifty50 index witnessed encouraging developments during the week as it repeatedly tested the crucial 100-DEMA. However, a decisive close above this key resistance level is still awaited to confirm a sustained breakout. Meanwhile, the narrowing gap between the 20 & 50 DEMA reflects an improving market structure and suggests that declines continue to attract buying interest," he added.
"For now, the index remains in a consolidation phase, with the 100-DEMA positioned around the 24140-24170 zone acting as an immediate hurdle. A convincing move above this resistance zone could trigger the next leg of the uptrend, opening the path towards the 24500-24600 region in the coming week. On the downside, the 20-DEMA has already demonstrated its significance by providing strong support during recent corrective phases. Consequently, the 23800 zone is expected to serve as a critical support level, followed by the bullish gap area till 23645."
"Overall, the broader undertone remains positively biased, with market dips likely to be viewed as buying opportunities. Looking ahead, any significant developments in global markets during the extended weekend could act as a key catalyst in shaping the intermediate trend for domestic equities in the coming week. Therefore, traders are advised to closely monitor global cues and macro developments. Meanwhile, thematic sectors continue to drive market action and are likely to remain the preferred avenue for domestic participants seeking relative outperformance," Osho Krishan added further.
Where is the market headed?
Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities
The reasonable bounce of the last two sessions seems to have halted at the hurdle of around 24200 levels on Thursday and Nifty closed the day off the highs.
A small negative candle was formed on the daily chart with a long upper shadow. Technically, this market action signals a rejection for the bulls at the crucial overhead resistance. The market breadth was weak on Thursday, with broad market indices settling with minor losses.
The near-term trend of Nifty remains positive amidst broader range movement. Having failed to surpass the crucial overhead resistance of 24200, one may expect further consolidation or a minor dip by next week. Immediate support to be watched at 23800. A sustainable move above 24200 could open more upside in the near term.
Amol Athawale, VP Technical Research, Kotak Securities
Technically, the market has formed a range-bound pattern. On the downside, it has been supported near the 50-day SMA or 23,800/76200, while facing consistent selling pressure near the 24,200-24,250/77800-78000 resistance level. For positional traders, 24,000/77000 would act as an immediate support zone. Above this level, the market could retest 24,200/77800. A successful breakout of 24,200/77800 could push the market towards 24,400-24,500/78400-78700.
On the flip side, below 24,000/77000, the market could slip to 23,800/76200. Further downside may also continue, potentially dragging the index to 23,650/75700.
For Bank Nifty, support zones are at 57,800 and 57,500. Above these levels, the rally could continue towards 58,700-59,000. Conversely, below 57,500
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