Domestic benchmarks rose on Friday to log their longest weekly winning streak of the year, led by index heavyweight Reliance Industries, while steady foreign inflows and renewed optimism over a potential India-U.S. trade deal supported sentiment.
The Nifty 50 closed 0.05% higher at 24,346.7 and the BSE Sensex gained 0.32% to 80,501.99. Both benchmarks rose about 1% earlier in the session before paring gains.
The Nifty rose 1.3% this week while the Sensex added 1.6%, marking their third straight weekly gain.
The Nifty continued it’s upwards rally for the third straight week which has been almost a vertical rise, possibility of some consolidation can not be ruled out before the next major directional move. Nifty hovered between a range of 24,000 to 24,600 while it will be crucial to hold the 23,800 level downside to maintain its bullish tone; a breach could lead to extended profit-taking, with the next major support near 23,400—where key moving averages such as 20- day, 100-day, and 200-day EMAs still supporting upside.
On the flip side, a decisive breakout above 24,400 on the closing basis could re-ignite bullish momentum, potentially propelling the index toward the 24,800 mark.
Bank Nifty continues to show consolidation after a vertical rise while supporting relative strength, above key moving averages even after profit booking of the initial rise. While some consolidation may be seen in the banking index, the broader tone remains optimistic. After a sideways move, in case we see further correction near 52,800-53,700 levels, buying interest is expected to emerge with an upside potential toward 55,500–57,000.
Looking at the present scenario, it is advisable to maintain a positive approach with “buy on dips” strategy and a preference for hedged positions in the index. Meanwhile, selective stock-picking opportunities continue to emerge with sector specific preferences. Hence, the focus should be on identifying stocks with favorable risk-reward setups.
