The index opened with a gap-up and extended its gains through the session, supported by strong buying in index heavyweights. Although profit booking near the 24,285-24,300 resistance zone trimmed part of the intraday gains, renewed buying in the latter half helped Nifty break above its intraday resistance and settle at 24,334, up 1.09%.
On the sectoral front, (verify sectoral data here), while Tech Mahindra and Kotak Mahindra Bank emerged as the top gainers on the Nifty. Hindalco Industries and Dr. Reddy’s Laboratories were among the biggest losers.
Broader markets underperformed the benchmark. The Nifty Midcap index opened weak and remained under pressure for most of the session before recovering some losses towards the close to end 0.41% lower at 62,428.
The Nifty Smallcap index also traded in negative territory during the first half. However, buying at lower levels helped the index pare losses, ending the day 0.21% lower at 19,296.
Market outlook
Market participants will now turn their attention to the Q1FY27 earnings season, which is expected to remain the key catalyst for sectoral and stock-specific movements next week.
Siddhartha Khemka of Motilal Oswal said Indian equities are likely to witness a gradual uptrend, supported by encouraging earnings so far. With several index heavyweights scheduled to report results over the weekend, investor focus will remain on management commentary and earnings reactions, which are expected to shape the near-term market narrative.
Meanwhile, Brent crude remains elevated at around $85.5 per barrel, while the rupee is hovering near a one-month low of ₹96.3 against the US dollar.
Earnings from HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank and Punjab National Bank are expected to set the tone for the financial sector.
Nagaraj Shetti of HDFC Securities said the short-term trend has turned positive, with Nifty approaching the crucial resistance zone of 24,350-24,400, where the previous downside gap and the 200-day EMA are placed.
Shetti said that a sustained move above this level could pave the way for an advance towards 24,600-24,700, while immediate support is seen at 24,200.
LKP Securities’ Rupak De said the breakout from a five-day consolidation phase reflects improving market sentiment. According to him, the index remains in a positive trend as it continues to trade above its key moving averages.
He expects Nifty to move towards 24,800 in the near term, with 24,200 acting as immediate support.
Sudeep Shah of SBI Securities expects immediate resistance in the 24,500-24,550 zone, which coincides with the previous swing high. A sustained move above this level could extend the recovery towards 24,700 and eventually 24,850. On the downside, he sees immediate support in the 24,200-24,150 zone.
