Indian stock market: Indian equity benchmarks closed higher on Friday, driven by strong gains in major banking stocks such as ICICI Bank, HDFC Bank, and Axis Bank.
The benchmark indices stayed in the green throughout the trading session, although upside remained limited due to elevated crude oil prices and growing inflation concerns, which may prompt tighter monetary policy measures.
The Sensex settled 232 points, or 0.31%, higher at 75,415.35, while the Nifty 50 gained 65 points, or 0.27%, to close at 23,719.30.
Stock market outlook for next week
According to Ponmudi R, CEO – Enrich Money, markets are likely to stay volatile and highly sensitive to headlines in the upcoming week, as investors closely track developments related to the US–Iran situation, wider diplomatic discussions and fluctuations in crude oil prices.
“Although expectations of a diplomatic resolution and easing geopolitical tensions have provided some support to sentiment, caution continues to prevail due to persistent uncertainty over the eventual outcome of the negotiations. Any meaningful advancement in diplomatic efforts or a sustained decline in crude oil prices could boost risk appetite, lift global sentiment and lead to short-covering rallies in equity markets. On the other hand, any fresh geopolitical tensions or renewed worries over disruptions to global energy supplies may quickly trigger risk-off sentiment and heighten market volatility,” Ponmudi said.
He further noted that apart from geopolitical factors, investors will also keep a close watch on rupee movement, trends in global equity markets, institutional investment flows and broader macroeconomic indicators for further direction. Despite the recent improvement in sentiment, elevated global uncertainty is expected to keep market participants cautious and selective in their approach.
What should be your market trading strategy next week?
Ajit Mishra, SVP, Research, Religare Broking, said that amid currency volatility, elevated crude oil prices, and uncertain foreign flows, investors should maintain a cautious and selective approach, given the prevailing backdrop of geopolitical uncertainty.
Mishra suggested traders to avoid aggressive leverage and continue to follow disciplined risk management practices. With volatility expected to remain elevated, a hedged and stock-specific approach will remain critical in the near term.
“We continue to prefer sectors such as energy, pharma, and metals, and recommend using market dips to accumulate quality names selectively. In addition, themes linked to capital markets and defense continues to appear promising,” he said.
At the same time, caution is warranted in the IT sector following the recent recovery bounce, and participants may consider utilising further strength to reduce trading positions, he said.
Key technical levels to watch out for next week –
Sensex
On the Sensex outlook, Ponmudi said that the index continues to trade with a cautious undertone amid volatile global cues and persistent geopolitical uncertainty.
“The index is currently hovering near the 75,400–75,600 range. Technically, immediate resistance is placed around the 75,800–76,000 zone, while support is seen near the 74,600–74,400 region. A decisive breakout on either side is likely to determine the next meaningful directional move for the broader market,” he added.
Nifty 50
On the Nifty 50 outlook, Mishra said that the index continues to trade with a corrective bias and a downward shift in its trading range, reflecting indecisiveness amid mixed domestic and global cues.
“Immediate support is placed around the 23,150–23,250 zone, followed by the 22,900 mark. On the upside, the 23,800–24,000 zone remains a key hurdle, and a decisive breakout above this band could trigger fresh momentum toward the 24,500–24,650 zone,” said Mishra.
Bank Nifty
Meanwhile, on the Bank Nifty outlook, he added that the index has remained relatively resilient after filling the gap around the 52,700 level. A move above the 20-DEMA, placed near 54,400, could trigger a rebound toward 55,100, followed by a major hurdle around 56,300.
“Support remains intact at 52,700, and a breach below this level may derail the relative outperformance and exert fresh pressure on the index,” he said.
Disclaimer: This story is for educational purposes only. The views and recommendations above are those of individual analysts or broking companies, not Mint. We advise investors to check with certified experts before making any investment decisions.
