The NSE Nifty 50 staged a decisive breakout above the 24,200 level on Friday, ending a brief consolidation phase and closing with gains of over 1% at 24,334, up 1.09%, according to CNBC TV18. The index opened with a gap-up and extended 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. The Nifty remains in a positive trend as it continues to trade above its key moving averages, with analysts expecting the index to move towards 24,800 in the near term, as per LKP Securities' Rupak De.
Brent crude remains elevated at around $85.5 per barrel, while the Indian rupee is hovering near a one-month low of ₹96.3 against the US dollar, as reported by CNBC TV18. The escalating tensions in West Asia continue to keep oil prices on tenterhooks, with rhetoric from the region showing no promising signs. Market analysts warn that further crude price increases could negatively impact the rupee, which is already near record low levels against the US dollar. This currency weakness would subsequently affect overall market performance, making oil price movements a critical factor for market direction. As per Ponmudi R of Enrich Money, persistently higher oil prices are expected to remain a key headwind for import-dependent economies such as India by adding to inflationary pressures and concerns over the current account deficit.
The Q1FY27 earnings season is expected to remain the key catalyst for sectoral and stock-specific movements next week, with market participants now turning their attention to the earnings season, according to CNBC TV18. 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. 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 noted that 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.
Market experts provide optimistic technical outlooks for the current market conditions. Nagaraj Shetti of HDFC Securities expects the short-term trend to remain positive, with Nifty approaching the crucial resistance zone of 24,350-24,400, where 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 believes the breakout from a five-day consolidation phase reflects improving market sentiment, expecting 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, with a sustained move above this level potentially extending recovery towards 24,700 and eventually 24,850. A decisive close above 24,350-24,400 would revive bullish momentum and pave the way towards higher levels.
Broader markets underperformed the benchmark with the Nifty Midcap index ending 0.41% lower at 62,428, while the Nifty Smallcap index closed 0.21% lower at 19,296, according to CNBC TV18. The Nifty Midcap index opened weak and remained under pressure for most of the session before recovering some losses towards the close. On the sectoral front, Tech Mahindra and Kotak Mahindra Bank emerged as the top gainers on the Nifty, while Hindalco Industries and Dr. Reddy's Laboratories were among the biggest losers. The cooling off in broader markets is attributed to major earnings lined up, with analysts suggesting bulls may be taking a cautious approach at higher levels, as the Nifty Bank index continues to influence overall market direction with its strong performance relative to Nifty 50.
