Indian Stock Market Ends Week on Strong Note
The Indian equity markets concluded the trading week with impressive gains as the benchmark Nifty 50 index climbed 1.19% to settle at 26,387 points. The bullish momentum was primarily driven by robust performances across key sectors, indicating sustained investor confidence in the market outlook.
Sectoral Performance Drives Market Rally
Several critical sectors demonstrated remarkable strength throughout the week, playing a pivotal role in pushing the index toward its resistance zone near 26,300 points. The metal sector emerged as a standout performer, alongside banking, automobile, finance, and pharmaceutical sectors, each registering substantial advances of 2-3% during the week.
The banking sector, represented by the Bank Nifty index, maintained its positive trajectory with a 2.04% weekly gain. This upward movement was supported by strong participation from both public sector undertakings (PSUs) and private banking institutions, reflecting broad-based strength within the financial services segment.
Technical Analysis and Market Structure
As market analysts had anticipated, the Nifty 50 continued to follow the previously identified bullish pattern, receiving additional support from robust GDP data that helped the market approach its next resistance range at 26,500 points. From a technical perspective, the index has successfully closed above the crucial 26,000 support area after consistently trading above the earlier resistance band of 25,700-25,800.
The derivatives data confirms this technical structure, with the highest Call open interest observed at the 26,300 and 26,500 strike prices, indicating key resistance levels. Conversely, the highest Put open interest is concentrated at the 25,800 and 26,000 strikes, highlighting strong support zones that could cushion any potential downward movements.
The index continues to form a higher-top, higher-bottom pattern, reflecting sustained bullish momentum in the current market environment. Technical analysts suggest that any dip toward the 25,500-25,800 region may present attractive stock-specific buying opportunities for investors.
Support and Resistance Levels
For the Nifty 50, fresh support is now positioned at 25,700-25,600, while resistance remains firm at 26,300-26,500. The Bank Nifty maintains its well-positioned stance above the 57,500-58,000 support cluster, with major resistance anticipated at 60,000-60,500 levels.
Market experts emphasize that as long as the Nifty holds above 25,600 and Bank Nifty sustains above 58,000, the broader market trend is expected to remain constructive and favorable for investors.
Expert Stock Recommendations
Analysts have identified several promising investment opportunities in the current market scenario:
ICICI Bank: Experts recommend buying in the price range of ₹1,380-1,390 with a target price of ₹1,440 and a stop loss set at ₹1,360.
Steel Authority of India (SAIL): Suggested entry point between ₹132-136 with a target price of ₹145 and stop loss at ₹126.
Gail (India): Recommended purchase at ₹174-176 with target price of ₹185 and stop loss positioned at ₹167.
Market Outlook and Trading Strategy
The Nifty's key resistance continues to hold at 26,300-26,500 with support established at 25,500, while Bank Nifty faces resistance near 61,000 and maintains support around 58,000. Market strategists advise traders to adopt a disciplined buy-on-dips approach in selective stocks while closely monitoring global cues and geopolitical developments for clearer directional signals.
Investors are cautioned that the views and recommendations presented are those of individual analysts, experts, and broking companies, and they should consult certified experts before making any investment decisions.
