The Indian stock market demonstrated resilience on Friday, with the Nifty 50 rising 244 points to settle at 24,206 after opening with a gap-up of 162 points and maintaining gains throughout the session. According to CNBC TV18, the close near the day's high suggests renewed buying interest following Wednesday's steep correction, with the recovery coming after a volatile trading week. The Nifty had plunged 516.65 points, or 2.12%, to settle at 23,882.05 on Wednesday, while the BSE Sensex had cratered more than 1,600 points after opening with a gap-down at 77,816. Market breadth remained severely negative as just 699 stocks managed to advance against a staggering 2,633 decliners, with the total market capitalization of BSE-listed companies shrinking from roughly ₹480.20 lakh crore to about ₹478.14 lakh crore, representing a loss of over ₹2 lakh crore within hours.
According to CNBC TV18, multiple analysts maintain a constructive view on the market's short-term prospects despite recent volatility. Nagaraj Shetti of HDFC Securities expects the Nifty to move towards the 24,500-24,600 zone over the coming sessions, while identifying 24,000 as the immediate support level. Rupak De of LKP Securities sees immediate resistance at 24,500, with 24,000 remaining a key support level. Hitesh Rathi of Angel One identified the 24,000-23,930 zone as the first line of support, followed by a stronger base between 23,850 and 23,800, with resistance seen in the 24,280-24,320 range. Nandish Shah of HDFC Securities noted that the Nifty held above its 50-day simple moving average of 23,829 throughout the week, reflecting sustained buying at lower levels. The RSI had slipped to 48.51, indicating that momentum had weakened considerably following the sharp sell-off, with India VIX surging 26% to 14.68 reflecting sharp rise in market volatility.
As reported by CNBC TV18, Realty, PSU Banks and Information Technology led the gains, while FMCG was the only major sector to close marginally lower. Among the Nifty constituents, Jio Financial Services, HDFC Life Insurance and Adani Enterprises were the top gainers, while Dr. Reddy's Laboratories, Eternal and Bharti Airtel ended among the biggest losers. The Nifty Midcap 100 gained 1.4% to scale a fresh record high, while the Nifty Smallcap 100 advanced 1.55% to end at a new 52-week high, indicating continued participation beyond large-cap stocks. This broader market outperformance suggests healthy participation across market segments, with mid and small-cap stocks showing particular strength despite the benchmark's volatility.
According to CNBC TV18, Bank Nifty also ended the week on a firm footing, closing 1.39% higher at 58,046 after opening with a gap-up and trading in a narrow range during the first half before extending gains in the latter half. Sudeep Shah of SBI Securities expects the index to face immediate resistance in the 58,500-58,600 zone, with a sustained move above this range potentially paving the way for an advance towards 59,000 and subsequently 59,500. On the downside, the 57,600-57,500 zone is expected to provide immediate support. The Nifty PSU Bank index tumbled 2.72% and the Nifty Private Bank index slumped 2.52%, reflecting fears that rising yields and a potential pause in the Reserve Bank of India's rate-easing cycle could pressure net interest margins and slow credit growth. High-beta and crude-sensitive sectors absorbed the heaviest blows, with the Nifty FMCG index and the Nifty Auto index each shedding more than 2%.
As reported by CNBC TV18, the market's recovery could come under pressure after the US military launched strikes on Iran following Tehran's alleged attack on a container ship on Sunday. Iran also claimed it had once again closed the Strait of Hormuz, while several Gulf states reportedly came under attack. This development adds to the geopolitical tensions that had previously influenced market sentiment, with crude oil developments continuing to influence market sentiment, with Brent crossing the $80 per barrel mark and WTI crude inching close to the $76 levels. VK Vijayakumar, chief investment strategist at Geojit Investments, noted that Brent at $80 is not a problem as it will not create a balance of payment crisis, with the crisis reemerging only if fresh West Asia tensions lead to Strait of Hormuz closure and crude spiking above $100. The Nifty FMCG index and the Nifty Auto index each shed more than 2%, as investors priced in the dual threat of higher raw material costs and potential pullback in rural and urban discretionary spending if fuel prices are passed through to consumers.
