The Nifty traded with a positive bias on Friday, opening with a gap-up before moving in a narrow range for most of the session as the 24,370-24,380 zone capped gains.

Profit booking was seen in the second half, pulling the index below the day's low and partially filling the opening gap. Despite the late weakness, the Nifty ended 95 points, or 0.39%, higher at 24,271.

The index had broken above the crucial 24,200 resistance during the session but failed to hold on to its intraday highs amid choppy trading.

Friday's gains capped a strong week for the benchmark, with the Nifty registering its highest weekly close in more than 10 weeks. The week began on a subdued note as the market faced selling pressure in the initial sessions.

However, a sharp rebound from key support levels revived bullish momentum, leading to three consecutive sessions of gains. The benchmark ended the week up 0.90% at 24,270.

Among sectors, Nifty Realty emerged as the top performer, followed by Nifty Healthcare. Nifty PSU Bank was the biggest laggard, while Nifty Energy also ended in the red.

Among individual stocks, HCLTech and Max Healthcare led the gains, while Axis Bank and SBI were among the top losers.

The broader market witnessed profit booking after the recent rally. The Nifty Midcap Index formed a bearish engulfing candle, indicating near-term weakness, while the Nifty Smallcap Index gave up most of its early gains to end the session largely unchanged.

Despite Friday's profit booking, both the midcap and smallcap indices continue to trade comfortably above their key moving averages, suggesting that the broader bullish trend remains intact.

Market outlook

Indian equities are expected to remain on a gradual upward trajectory, supported by favourable global cues and easing concerns over the US interest rate outlook.

Investors will also track June-quarter business updates for stock-specific triggers, while the progress of the southwest monsoon will remain in focus after June rainfall came in 40% below the Long Period Average.

The India Meteorological Department has forecast July rainfall at 94% of the Long Period Average, while revising its full-season 2026 monsoon forecast to 90% due to El Niño conditions.

Nagaraj Shetti of HDFC Securities expects the ongoing consolidation to end soon, paving the way for a fresh upmove. He sees the Nifty targeting 24,600 next week, with immediate support placed at 24,050.

Nilesh Jain of Centrum Finverse said the index has moved decisively above the 24,100 mark, which also coincides with its 100-day moving average. As long as the Nifty sustains above this breakout zone, he expects a gradual move towards 24,550.

Rupak De of LKP Securities also remains constructive on the benchmark, expecting the Nifty to advance towards 24,500 and potentially higher. He sees immediate support at 24,200, followed by a stronger support zone around 24,000.

Meanwhile, Bank Nifty spent the week consolidating after its sharp rally earlier in June. Apart from Wednesday's strong gains, the banking index largely traded in a narrow range and ended the week 0.41% lower, just below the 58,000 mark.

Rajesh Bhosale of Angel One said the banking index is undergoing a time-wise correction after its recent rally, but the broader trend remains positive as it continues to hold above the April breakout zone near 57,500.

He expects the 57,000-56,500 zone to provide strong support, while a sustained move above the 58,500-58,800 resistance band could trigger the next leg of the uptrend.