Indian equity benchmarks ended the week in the green for the second consecutive time, driven by significant short covering following the US-Iran ceasefire. The Nifty surged by 5.89% throughout the week, with a 1.16% increase on the final trading day, reaching 24,050. Similarly, the Sensex rose by 918 points or 1.20% to settle at 77,550, marking a 5.77% gain for the week.
Both indices exhibited strong momentum and boosted investor confidence. The Bank Nifty outperformed the broader market, closing at 55,912, up by 1.99% on Friday, with an impressive weekly surge of 8.47%. Analysts suggest that the Bank Nifty index’s formation of a bullish candle on the weekly timeframe indicates sustained strength and potential further upside if momentum holds.
Market participants anticipate support for the Bank Nifty index in the 53,700–53,000 range, while resistance is foreseen around the 56,700–57,700 zone. Observers highlight that Nifty’s movement signals robust buying activity, reflecting a positive sentiment in the market. From a technical perspective, the 23,500–23,150 range is seen as a crucial support zone, with resistance expected in the 24,500–25,000 band.
India VIX declined by 7.72% to close at 18.85, indicating reduced market volatility and diminished fear. However, concerns persist over the sustainability of the US-Iran truce, keeping volatility levels elevated. Notably, Nifty realty, capital markets, and financial services emerged as the top gainers on a weekly basis, climbing by 12.97%, 11.7%, and 10.8%, respectively.
During the week, broader indices mirrored the benchmark indices’ performance, with the Nifty Midcap100 rising by 7.76% and the Nifty Smallcap100 by 7.60%. Investors are closely monitoring developments in the US-Iran negotiations, fluctuations in crude oil prices, and foreign fund inflows.
