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Market Closing Commentary

Indian benchmark indices opened with a gap-up and extended their gains throughout the session, supported by strong buying interest in index heavyweights. Investor sentiment remained upbeat ahead of the upcoming quarterly earnings of index heavyweights over the weekend, with market participants preferring large-cap stocks amid expectations of healthy corporate earnings. At close, the Nifty 50 gained 1.09% to settle at 24,334, while the Sensex advanced 1.25% to close at 78,151.

On the sectoral front, Nifty IT and Private Banks emerged as the top-performing sectors, providing significant support to the benchmark indices. On the other hand, Metal and Pharma stocks remained under pressure and were the key laggards during the session. The broader market underperformed the benchmark indices, indicating a shift in investor preference towards large-cap stocks. The Nifty Midcap 100 index declined 0.41%, while the Nifty Small cap 100 index fell 0.21%, reflecting selective profit booking in the broader market.

Nifty Outlook

Nifty traded with positive bias and closed with firm gains on Friday’s session. It has formed a strong bullish candle with a higher high and a higher low signaling strength and continuation of the up move as the index closed around the upper band of the recent consolidation.

Over the weekend many of the Index heavyweights such as Reliance Industries, ICICI Bank, HDFC Bank, Kotak Bank and Axis Bank are schedule to release its quarterly earnings. Nifty will react to the same on Monday’s session. Going ahead, bias remain positive and a follow through strength above last week high 24,367 will open upside towards the 24,480 and 24,600 levels being the trendline resistance and high of April 2026, respectively. Failure to move above last week high will signal extension of the recent consolidation in the range of 24,350-23,800.

Short-term support is placed at 24,000-23,800 levels, being the confluence of the almost identical low of the last 5 weeks and 50 days EMA. Index holding above the support area will keep the bias positive.

Bank Nifty Outlook

Bank Nifty formed a strong bullish candlestick pattern with a higher high and a higher low signaling strength as the index closed around the upper band of the last five weeks range. The Index in the last 5 weeks is seen consolidating in the range of 58,700-56,500. Going ahead a move above the June high of 58,700 would confirm a breakout from the ongoing consolidation and could trigger the next leg of the rally towards 59,300 and eventually 60,000 levels in the coming weeks. On the downside index has major support placed at 56,500-57,000, where the 20-week and 50-week EMAs converge along with the previous week's low, making it a strong demand zone.

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