The Indian equity markets remained range-bound throughout the week, ultimately closing with modest gains as they digested the sharp rebound from the previous week. The initial positive momentum was met with profit-taking in subsequent sessions, limiting further upside. By the end of the week, the benchmark indices—Nifty and Sensex—closed at 23,519.30 and 77,414.92, respectively.
Nifty continues to consolidate within a narrow range of 23,400-23,800, while staying above key support levels marked by the 100- and 200-day exponential moving averages (DEMA). A decisive breakout could open the door for a rally towards 24,100, whereas a breakdown may extend the consolidation phase, with the next major support at 23,100.
The banking index outperformed the broader market, posting nearly 2% gains amid consolidation. The 50,700 level, which previously acted as resistance, has now turned into a key support. The index is expected to gradually move towards 52,800, with 53,900 as the next upside target.
Traders should maintain a “buy on dips” strategy, prioritizing sectors with sustained strength. Banking and financial stocks remain our top picks, while selective opportunities can be explored in other sectors and broader market as well. However, caution is advised in IT stocks, which signal potential underperformance in the near term.
