Indian stock market: Indian stocks closed with impressive gains on Friday, driven by the RBI’s dual boost—a 50 basis point reduction in the repo rate and a 100 basis point cut in the CRR—which lifted hopes for stronger credit demand and a rebound in domestic economic growth.
Markets remained in a consolidation phase for the third straight week but still posted gains of nearly 1%, supported by positive domestic factors. After trading within a narrow range for most of the week, benchmark indices rallied sharply on Friday, ending near their weekly highs.
The Nifty 50 and Sensex ended the session on a strong note, both rising by more than 1%. The Nifty 50 advanced 252 points, or 1.02%, to settle at 25,003, while the Sensex climbed 443 points, or 1%, closing at 82,188.
“The stock index has moved up sharply following a bazooka policy move by the RBI. It closed above the 25,000 mark after several sessions, indicating a surge in optimism among market participants. Typically, a rally followed by consolidation often results in an upward breakout, and this time too, we expect Nifty to break out above the recent consolidation range,” said Rupak De, Senior Technical Analyst at LKP Securities.
Where’s Nifty 50 headed in short-term?
According to Ajit Mishra – SVP, Research, Religare Broking, the Nifty has once again approached the upper band of its prevailing consolidation range of 24,500–25,100.
Mishra further added that a decisive breakout above 25,200 would mark the beginning of a fresh uptrend, with potential to gradually move toward the 25,600–25,800 zone. On the downside, the 24,400–24,600 range is expected to act as a strong support zone during any corrective phase.
“ With the RBI’s rate cut and dovish commentary acting as strong tailwinds, we maintain our positive outlook on the markets and suggest continuing with a “buy on dips” strategy unless the Nifty decisively breaks below 24,600. However, investors should remain selective and focus on fundamentally strong stocks in sectors such as banking, auto, and real estate, which are poised to benefit from lower interest rates. Other sectors may contribute on a rotational basis,” Mishra said.
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