The benchmark Nifty has successfully broken above the critical 24,500-24,550 resistance zone after closing Friday at 24,334.30, marking a 1.09% daily gain and a 0.6% weekly increase. According to SBI Securities analyst Sudeep Shah, this breakout aligns with the previous swing high and opens the path toward 24,700 as the next near-term target. The index had been trading within an exceptionally narrow range of just 367 points last week, marking its smallest weekly trading range since December 2025, but the latest earnings momentum has provided the catalyst for a decisive move higher. The weekly picture shows Nifty 50 and Sensex gaining approximately 0.6% for the week, signaling a cautious but improving risk appetite as the Q1FY27 earnings season continues to unfold.
The subdued price action had previously led to the formation of a Bollinger Band Squeeze on the daily chart, with momentum indicators reflecting ongoing indecision. However, the latest breakout has invalidated the previous consolidation pattern, with the 24,150-24,200 zone now serving as immediate support. As reported by SBI Securities, a decisive break above 24,550 can pave the way for a test of 24,700, while a breach below 24,150 would invite further downside toward the 24,000s. The Average Directional Index (ADX) had declined to 10.56, its lowest reading since July 2021, but the recent breakout suggests renewed trend strength is emerging in the market.
The banking benchmark Bank Nifty has shown strong momentum, with the index now hovering near the upper end of its consolidation range. According to SBI Securities, the immediate resistance for Bank Nifty is placed in the 58,700-58,800 zone, which coincides with its previous swing high, while the 58,100-58,000 zone serves as immediate support. Any sustainable move above the resistance zone could extend toward 59,200, followed by 59,600 in the short term. The banking sector's strong performance is being driven by earnings from major financials including HDFC Bank, Punjab National Bank, ICICI Bank, and Kotak Mahindra Bank, which posted quarterly numbers over the weekend. The combination of rising indices and resilient earnings supports a constructive stance, particularly for the banking and financial services space.
According to SBI Securities, Bharat Forge remains a strong accumulation candidate in the ₹2,175-2,195 zone with a stoploss of ₹2,110, targeting an upside move to ₹2,350. The stock has given a bullish breakout after consolidating within the 2,082-2,176 range since the beginning of July, backed by sharp surge in volumes indicating strong institutional participation. Additionally, Bajaj Finance is recommended for accumulation in the ₹1,050-1,060 zone with a stoploss of ₹1,015, targeting ₹1,135 on the upside, following a strong bullish technical setup after breaking above a downward-sloping trendline. For retail investors, the prudent approach is to focus on risk controls, validate price action with earnings flow, and consider using pullbacks near 24,150-24,200 as potential entry points with strict stop placements.
The strong Q1FY27 earnings season continues to shape market direction, with major financial institutions posting quarterly numbers over the weekend. As reported by SBI Securities, earnings momentum from HDFC Bank, Punjab National Bank, ICICI Bank, and Kotak Mahindra Bank is likely to remain the key driver of sectoral and stock-specific performance, supporting a gradual uptrend in Indian equities. The combination of rising indices and resilient earnings supports a constructive stance, particularly for the banking and financial services space. Traders should monitor the pace of guidance and the breadth of gains across sectors to time risk accordingly, as the market's momentum reflects a blend of price action and fundamental prints during this earnings season.
