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The markets continued their upward momentum for the eighth straight session on Friday, marking their longest gaining streak in a year. The Nifty climbed to a two-month high, reclaiming levels above 25,100.
After opening with a 70-point gap, the index advanced further in the early to mid-session before settling into a narrow range. Broader market participation strengthened the uptrend, helping the Nifty close the week above 25,100. The index gained 109 points to end at 25,114.
Among Nifty constituents, BEL and Bajaj Finance emerged as top gainers, while Eternal and Hindustan Unilever were the biggest losers.
The broader market also held firm, with the Nifty Midcap100 up 0.3% and the Smallcap100 rising 0.6%.
Financial services and metals advanced 1% each, while the IT index posted modest gains led by Infosys after it approved its largest-ever buyback worth ₹18,000 crore.
Defence stocks surged, driving the Nifty India Defence index over 4% on the back of fresh order wins.
Global cues
The Indian equity rally mirrored global markets, where hopes of a US Fed rate cut next week buoyed sentiment. A 25-bps cut is widely expected following weak US jobs data. Such a move typically supports emerging markets like India by weakening the dollar, attracting foreign flows, lowering borrowing costs, and lifting risk appetite.
Investors will also watch policy decisions from the Bank of England and Bank of Japan, which could influence global liquidity.
"The near-term outlook remains constructive, albeit with potential volatility around central bank events. Progress in India-US trade negotiations could further boost confidence," said Siddhartha Khemka of Motilal Oswal.
Meanwhile, both foreign and domestic institutional investors remained net buyers in the cash market on Friday.
What do the Nifty50 charts indicate?
The Nifty closed above the weekly close of the last eight weeks at 25,100, signaling a positive outlook. The index is trading comfortably above key short- and long-term moving averages.
Nilesh Jain of Centrum Broking said that a breakout from a symmetrical triangle pattern on the daily chart suggests further upside, with a conservative target of 25,500 likely during the September series. He pegged immediate support at the 50-day moving average around 24,900.
He recommended a buy-on-declines approach, cautioning that some profit-taking at higher levels is possible after the recent rally.
Sudeep Shah of SBI Securities mentioned that the Nifty has closed significantly above the 25,025-25,035 resistance zone from earlier sessions. He sees support at 25,050-25,000, with a breach below 25,000 potentially leading to 24,900. On the upside, momentum could carry the index to 25,200-25,250.
Nagaraj Shetti of HDFC Securities added that sustaining above 25,000-25,100 opens the path towards 25,350-25,400, with support at 24,900.
Rupak De of LKP Securities said that strong put writing around 25,000 is providing support. As long as the index holds above 24,850, the undertone stays constructive. A move beyond 25,150 could trigger a rally toward 25,500.
What do the Nifty Bank charts indicate?
The Nifty Bank ended at 54,809.30, up 0.26%, with weekly gains of 1.28%.
Shah of SBI Securities said support lies at 54,600-54,500, while resistance is placed at 55,100-55,200.
According to Om Mehra of SAMCO Securities, the outlook remains stable, and a buy-on-dips approach is preferred as long as the index holds above 54,300.
