The benchmark Nifty index has extended its pullback rally for the second consecutive week, closing at 24,353.55 with a 1.26% weekly gain. According to Moneycontrol Pro, the broader markets are now taking the lead, with Nifty Midcap 100 surging 3.5% and Nifty Smallcap 100 climbing 4.3%, clearly outperforming the frontline index. The rally has been supported by softer crude oil prices and easing foreign institutional outflows, with investors cheering Iran's decision to reopen the Strait of Hormuz. Sectoral performance was broadly positive, with Nifty Capital Markets leading gains at 7%, followed by Nifty Defence rising 6.2% and Nifty Energy and Metal indices gaining 4.5% and over 4% respectively. However, Nifty IT remains in the lagging quadrant with momentum showing signs of stabilization after recent declines.
Market breadth has reached historic highs, with the 40-day advance-decline ratio breaking out of its tight range of 34-36, climbing to 38.26, indicating that market participation is broadening and supporting the rally's sustainability. Since the start of April, benchmark indices Sensex and Nifty 50 have gained about 9.1% each, while broader markets have significantly outperformed with the BSE MidCap 150 and BSE SmallCap 250 indices rising 13% and 16% respectively. This represents a dramatic shift in market dynamics, with smaller companies leading the charge as investors rotate from large-cap to mid and small-cap stocks. The net new one-year highs indicator for Nifty 50 stocks has turned positive for the first time in nearly two months, suggesting that select Nifty 50 stocks are beginning to recover their footing and are once again pushing toward new highs.
Bank Nifty ended the week on a positive note but faces consolidation challenges near key resistance levels. According to Moneycontrol Pro, Nifty PSU Banks are weakening with sharp momentum decline, while Nifty Banks and Nifty Private Banks continue to weaken with their momentum trending downward. The FII net index position currently stands at -653,595, reflecting a net bearish stance but marking a meaningful recovery from extreme pessimism seen just a couple of weeks ago. Foreign institutional investors have clearly begun unwinding their bearish bets, with the indicator now tracing a higher-high structure, indicating that sentiment is gradually turning. The trend is shifting from aggressive selling to cautious retreat, with the latest close breaking above recent resistance zones, suggesting that FII selling pressure is easing and that short positions are being actively covered.
APL Apollo Tubes has shown strong bullish intent after a 14.5% pullback from its early April lows, indicating solid support at lower levels. As reported by The Times of India, the stock delivered a decisive breakout with a positive DI crossover on ADX signalling clear buyer dominance, while the MACD nearing a move above the zero line with rising histogram bars points to strengthening momentum. The recommendation suggests accumulating in the 2,110-2,090 zone with a stoploss of 2,020, targeting 2,255 in the short term. HDFC Asset Management Company exhibited strong bullish momentum with a 4.89% gain on Friday, having surged nearly 26% from its March lows. The stock recommendation suggests accumulating in the 2,800-2,770 zone with a stoploss of 2,690, targeting 2,990 in the short term. Among stocks expected to perform better during the week are NALCO, Siemens, BHEL, NMDC, VEDL, PFC, BSE, Adani SOL, Power India, Laurus Labs and Titan, with Nifty Realty and Nifty FMCG showing potential for improvement after recent shifts from lagging to improving quadrants.
