The Nifty delivered a decisive technical breakout on Friday, closing 1.09% higher at 24,334.30 with a weekly gain of 127.40 points (0.53%). According to ET Now, the index surged past the middle Donchian Channel band at 24,160 and broke sharply higher after a phase of tight consolidation within a narrowing triangle formation that had been developing since July 8. The BSE Sensex closed at 78,151.45, up 964.58 points (1.25%) for the session, while weekly gains for both indices reversed the losses seen in the previous week. The rally was led by strong buying in IT and banking stocks amid optimism over business updates and expectations of healthy first-quarter earnings. Tech Mahindra, Kotak Bank, Jio Finance, TCS and ICICI Bank were among the top gainers, while major losers included Hindalco, Dr Reddy's, Wipro, Sun Pharma, Apollo Hospital and Max Health. As per The Economic Times, the markets traded in a range-bound yet positive manner, with bouts of profit-taking at higher levels and buying support on declines.
The Nifty has successfully defended the 23,800–24,000 support zone, reinforcing it as a crucial support area and the immediate base for the ongoing recovery. As reported by The Economic Times, the index is now approaching the 24,500 zone, where it is likely to encounter the 100-week moving average, making it an important hurdle on the upside. According to latest analyst predictions, Nifty has approached the crucial 24,400–24,500 resistance zone, which coincides with a major horizontal supply area as well as the 100-week moving average near 24,490. Om Mehra from SAMCO Securities expects immediate resistance at 24,520, with a decisive close above this level potentially opening the door toward 24,640. Nagaraj Shetti from HDFC Securities believes a sustained move above 24,400 levels could open the next upside target of around 24,600-24,700 levels in the short term. Riyank Arora from Hedged.in notes that resistance is seen near 24,450–24,550, with a sustained move above this zone potentially paving the way for further upside in coming sessions. HDFC Securities' Nagaraj Shetti expects the rally to extend towards 24,500-24,750 levels, with some analysts seeing the potential for 25,000, although they believe the index must first overcome resistance around the 24,350-24,600 zone.
Technical analysts are turning increasingly bullish on the Nifty's outlook following Friday's decisive breakout. Om Mehra from SAMCO Securities noted that the Nifty continues to trade above all its key moving averages except the 200-day SMA, with the RSI moving back near the 60 mark, reflecting a pickup in momentum following the breakout. Nagaraj Shetti from HDFC Securities believes Friday's rally has strengthened the short-term outlook after the index broke out of its recent trading range, with the underlying short-term trend of Nifty seeming to have turned up. Riyank Arora from Hedged.in stated that the sharp recovery has reinforced the positive market structure, with indices comfortably trading above key support levels. The expert believes traders may continue to adopt a buy-on-dips strategy while maintaining disciplined risk management, as long as benchmark indices continue to hold above their immediate support levels. Immediate support for the Nifty is placed around 24,200–24,150, followed by 24,000, while resistance levels are seen near 24,450–24,550, with a decisive move above this zone potentially paving the way for further upside.
The Relative Rotation Graph (RRG) shows that Nifty Realty, Pharma, Media, and Midcap 100 indices are inside the leading quadrant, collectively likely to outperform the broader Nifty 500 Index. As reported by The Economic Times, Nifty Energy, Infrastructure, and Metal indices are inside the weakening quadrant, showing a slowdown in their overall relative performance. The Nifty Services and Financial Services Sector indices have rolled into the improving quadrant, with the Bank Nifty also in the improving quadrant. Among sectoral indices on Friday, all sectors except pharma, metal and consumer durables ended in the green. Nifty IT gained 1.75%, Nifty Auto advanced 1.24%, while Nifty PSU Bank and Nifty Private Bank also posted strong gains, with the private banking index rising by more than 2%. For trading opportunities, Geojit's Anand James recommends India Cements (target 440, stop loss 390) and Bharat Forge (target 2320, stop loss 2120) as top picks, with both stocks showing strong technical setups after breaking key resistance levels. According to Master Capital Services, Bank Nifty also ended the week on a strong footing, extending its gains and continuing to outperform the broader market.
Institutional flows reflected a clear divergence during the week, with Foreign Institutional Investors (FIIs) remaining net sellers across all five trading sessions, recording total outflows of approximately ₹9,119.76 crore. The heaviest selling was witnessed on Thursday at ₹4,205.56 crore, followed by Monday at ₹3,062.27 crore, while Friday saw comparatively moderate selling of ₹376.41 crore. In contrast, Domestic Institutional Investors (DIIs) provided strong liquidity cushion by remaining net buyers throughout the week, with cumulative inflows of around ₹9,808.64 crore. The strongest DII buying was recorded on Thursday at ₹2,986.41 crore and Tuesday at ₹2,927.71 crore. Overall, sustained domestic institutional inflows successfully absorbed foreign selling, resulting in a marginally positive combined institutional flow of approximately ₹688.88 crore and providing crucial support to Indian equities. According to Goodreturns, global developments are expected to play a crucial role in determining market direction, with investors closely monitoring geopolitical developments in the Middle East, as any escalation in tensions could trigger volatility in crude oil prices and dampen overall market sentiment.
