Indian markets concluded the week with modest gains amid heightened volatility as investors evaluated the new Closing Auction Session (CAS) framework for F&O stocks, the Reserve Bank of India's monetary policy decision, and ongoing geopolitical uncertainties.
The Sensex rose 0.52% to close at 78,499.17, while the Nifty gained 0.77% to settle at 24,570.65.
Sectoral performance was broadly positive, led by Metal, Information Technology, Automobiles, New-Age businesses, Banking, and Cement, which gained between 2% and 5%. Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, noted that the Nifty continued its upward trajectory after defending the 23,800 support zone, with a sustained close above 24,300 strengthening the market towards the 24,600–24,800 resistance zone.
“The Indian equity benchmarks ended the week on a positive note, with the Nifty 50 closing at 24,570, registering a weekly gain of 0.77%, while the Bank Nifty settled at 57,746, advancing nearly 0.84%.”
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi
Dongre highlighted that the Nifty has entered an overbought zone on the weekly timeframe following the recent rally, suggesting potential consolidation or profit booking. However, the broader technical structure remains positive, with a buy-on-dips strategy recommended. The Nifty is expected to remain within the 23,800–24,800 range, with a breakout above 24,800 potentially accelerating the rally towards the 25,000+ zone.
The Bank Nifty also maintained a positive bias, gaining nearly 0.88% and approaching the 58,000 mark. It rebounded strongly from its 200-day EMA around 56,300, reinforcing a constructive medium-term outlook. A breakout above the 58,000–58,500 resistance zone is crucial for fresh buying momentum, with immediate support around 56,000.
“Overall, both the Nifty and Bank Nifty continue to maintain a positive medium-term structure, supported by strong technical setups and improving buying interest.”
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi
Overall, both the Nifty and Bank Nifty maintain a positive medium-term structure, supported by strong technical setups. However, given the recent sharp rally and overbought conditions, some consolidation or profit booking may occur before the next significant upmove. Dongre advises monitoring the 24,800 breakout level for Nifty and 58,500 for Bank Nifty.
Background
The Indian stock market has been navigating through a series of challenges, including policy changes and geopolitical tensions, which have contributed to market volatility. The introduction of the new CAS framework and the RBI's monetary policy decisions are key factors influencing investor sentiment.
Looking ahead, investors should watch for a decisive breakout above key resistance levels to confirm the next leg of the rally. The market's response to geopolitical developments and monetary policy decisions will also be crucial in shaping future movements.
