The NSE Nifty 50 rose 0.3%, or 64.60 points, to close at 23,719.30, while the BSE Sensex advanced 0.3%, or 231.99 points, to end at 75,415.35 on Friday. Both indices recorded a 0.4% gain this week, recovering from a more than 2% drop last week, as technical indicators suggest potential gains ahead.
Analysts are optimistic about the Nifty's trajectory, with Rohit Srivastava, founder of strike.money and indiacharts.com, predicting a breakout that could propel the index to 25,800 levels in the next month. Meanwhile, US-Iran negotiations continue to impact global markets, with US Secretary of State Marco Rubio noting potential progress despite ongoing disagreements over Iran's uranium policies.
Domestically, banking and financial stocks led the charge, with the Bank Nifty and Nifty Financial Services gaining 1.2%, and the Nifty Private Bank index climbing 1.5%. However, the Nifty Pharma and Nifty Healthcare indices saw declines of 1.3% and 1.5%, respectively. Nilesh Jain of Centrum Finverse commented on the banking sector's rally as a pullback move, with sustainability yet to be determined.
“The rally in the banking and financial services stocks was merely a pullback move after recent underperformance, and the sustainability of the gains remains to be seen.”
Nilesh Jain, VP- Head of technical and derivative research at Centrum Finverse
Foreign portfolio investors sold shares worth a net ₹4,440.5 crore on Friday, while domestic institutional investors bought shares worth ₹6,003.5 crore. The India VIX volatility index rose 0.5% to 17.9 on Friday, although it dropped 4.7% over the week.
The broader market saw mixed results, with 2,168 shares advancing and 2,027 declining. The Nifty Midcap 150 index advanced 0.1%, while the Nifty Smallcap 250 ended 0.1% lower.
“Nifty is likely to inch higher towards 23,900-24,000 levels in the short term.”
Nilesh Jain, VP- Head of technical and derivative research at Centrum Finverse
Background
The Indian stock market has been experiencing volatility due to global economic uncertainties and domestic factors. The recent gains in Nifty and Sensex come after a significant drop last week, reflecting the market's sensitivity to both local and international developments.
Looking ahead, analysts suggest keeping an eye on the Nifty's short-term movements, with expectations of it inching towards 23,900-24,000 levels. The support level has shifted higher to 23,500, indicating a positive short-term setup.
