Indian stock markets staged a sharp rally on Friday, with the Sensex surging over 1,695 points to close at 75,527.95 and Nifty50 jumping over 461 points to end at 23,622.90. According to reports from The Economic Times, the rally added around ₹10 lakh crore to the combined market capitalisation of BSE-listed companies, taking the total market value to around ₹462 lakh crore. The strong performance was driven by hopes of a US-Iran peace deal, easing crude oil prices, and improving global sentiment that lifted investor confidence.
Analyst Sudeep Shah from SBI Securities highlighted that Nifty closed above its 20-day EMA for the first time since May 2026, signaling an improvement in short-term momentum. As reported by The Economic Times, the daily RSI has rebounded sharply from lower levels and is now trading above the 50 mark while the Daily Stochastic generated a bullish crossover. Shah expects the index may extend its upward move towards 23,800, followed by the psychological 24,000 mark, with downside support at 23,350–23,300. For Bank Nifty, he projects an extension towards 57,500 level, followed by 58,300 in the near term.
While Nifty and Bank Nifty showed positive momentum, Nifty IT faces headwinds with momentum indicators favoring bears. According to the analysis reported by The Economic Times, the RSI has slipped below the 40 mark and the MACD line trades below both signal line and zero line. The sector is positioned in the Weakening quadrant of the Relative Rotation Graph, suggesting deteriorating relative momentum versus the broader market. On the downside, 27,050–27,000 zone acts as crucial support for IT stocks.
Derivatives data showed improving market sentiment with FII long-short ratio in index futures improving from 7.5% to 10% over the last three sessions, reflecting meaningful short covering. As reported by The Economic Times, the market's ability to defend the 23,120–23,100 zone highlighted the presence of buyers at lower levels. The Put-Call Ratio divergence and crude oil price breakdown, despite geopolitical tensions, collectively hinted at the possibility of a pullback rally even before renewed US-Iran deal discussions emerged.
For HDFC Bank, despite Friday's recovery and reclaiming its 20-day EMA, analysts suggest it may be premature to conclude a decisive trend reversal. According to The Economic Times, the stock can witness a pullback as long as it remains above the ₹730–725 zone. HFCL has witnessed profit booking of nearly 18% from its June 4 high of ₹209, with the ₹160–155 zone acting as strong support. Sterlite Technologies maintains a bullish structure as long as it holds above the ₹530–525 zone. All three stocks show encouraging technical signs with improving momentum indicators.
