As per Bajaj Broking Benchmark indices ended the truncated week on a positive note, posting gains of nearly 1%, and marking their second consecutive day of advances on Friday. The Sensex closed 224 points higher, or 0.28%, at 81,207, while the Nifty added 58 points, or 0.23%, to settle at 24,894.

Overall market breadth remained positive. Metal stocks led the rally throughout the week, with the Nifty Metal index surging nearly 4% during the week. The sector's strong performance was supported by multiple factors — a weaker US dollar index, reports of the European Union potentially raising steel import tariffs to as much as 50%, improved demand outlook, and China’s move to curb steel production.

PSU bank stocks were another major contributor, with the Nifty PSU Bank index climbing over 4% for the week. In Friday's session, metals, PSU banks, and consumer durables led the gains, each rising between 1% and 2%. Meanwhile, auto, realty, and healthcare sectors saw marginal declines, slipping between 0.1% and 0.2%. The broader market continued its recovery, with the Nifty Midcap 100 rising 0.83% and the Nifty Small cap 100 up 0.69%.

Nifty Outlook

On the daily chart index has formed a bull candle with a higher high and higher low signaling extension of the pullback for the second session in a row. On the weekly chart it has formed a bull candle with a small lower shadow signaling buying demand from near the critical support zone around 24,400–26,600. In the coming week, a follow through strength will open further upside towards 25,100 levels in the coming sessions being the 61.8% retracement of the entire recent decline (25,448-24,588). While short term resistance remains at 25,400 levels being the trendline resistance joining the major highs of June & September 2025. On the downside, Friday's low of 24,747 will act as immediate support sustaining above which will keep the current pullback intact. While key support as mentioned in earlier editions remain at 24,400-24,600 levels being the confluence of 200 days EMA, last week low and previous major low of the last 2 months.

Bank Nifty Outlook

Bank Nifty continues to demonstrate notable strength over the past 3-4 sessions. The formation of a bullish candle with a higher high and higher low in the daily chart signals continuation of the positive momentum underpinned by strength in large cap banking stocks. The index is now trading above its key 21- and 50-day EMAs, currently at 54,940 and 55,120, respectively, indicating that the short- to medium-term trend remains bullish.  Support levels have also shifted higher, now positioned around 54,800 and 55,000, providing a solid base for further upside. Strength is seen in all time frame suggesting a buy-on-dips strategy to be adapted. On the higher side resistance is placed at 56,150 levels being the confluence of the 61.8% retracement of the entire decline ( 57628-53561) and the high of August 2025.

Metals, PSU Banks Lead Gains as Nifty Eyes 25,000

As per Ashika Institutional Equities, Indian equities opened on a muted note, with the Nifty commencing trade at 24,759 and slipping marginally to an intraday low of 24,747 before staging a steady upward move through the session. Technically, the index is consolidating near the 24,800 mark and appears poised to challenge the psychological resistance at 25,000. Sector-wise, notable strength was observed in Metals, PSU Banks, Consumer Durables, and select Private Banks, while Healthcare, Construction, Media, and Automobiles witnessed weakness.

On the global front, investor sentiment remained cautious amid lingering concerns over a potential U.S. government shutdown and calls by Democratic senators for the release of crucial jobs data, which could influence market direction. In the derivatives segment, significant open interest buildup was seen in POWERINDIA, NUVAMA, MAXHEALTH, TATAMOTORS, and DELHIVERY.

By Siddhartha Khemka - Head of Research, Wealth Management, Motilal Oswal Financial Services Ltd

Indian equities closed higher for the second straight session on Friday, buoyed by optimism from the Reserve Bank of India’s dovish stance and recent regulatory reforms. The Nifty50 gained 57 points (+0.2%) to end at 24,894, while the Nifty Midcap100 and Smallcap100 rose 0.8% and 0.7%, respectively.

Sectorally, most indices finished in the green. Nifty Metals (+1.8%), metals stocks saw increased activity on the back of higher metals prices, reduced supply while demand continue to remain strong. PSU Banks (+1.1%) also advanced, with RBI’s recent measures—ECL migration from Apr’27, lower risk-weights, deposit insurance revamp, and NBFC overlap clarity—strengthening resilience and capital efficiency while supporting credit growth.

Defence stock rose for the 3rd straight day with private defence stocks outperforming the PSU defence baskets. Capital goods sector remained under focus on the back of reiteration from the finance minister that the government’s commitment to increase capital expenditure to support growth remain intact.

Also Read: Industry Reactions to RBI's Repo Rate Announcement

Quarterly updates from value fashion retailers that target middle-class and rural consumers, primarily in Tier-2 and Tier-3 cities showed strong performance on the revenue and SSSG growth. Brent crude prices fell for the third straight session to a 16-week low as concerns over a potential US government shutdown and expectations of higher OPEC+ supply weighed on the market.

Lower crude prices ease concerns on India’s import bill and inflation, which is positive for domestic equities. Sep’25 Auto wholesales saw mixed trends, especially in PVs, and were largely limited by logistics constraints, retail sales picked up well across segments with four listed players grew 11% YoY. In 2Ws, the 4 listed players posted 11% YoY growth.

The top three CVs registered ~13% YoY growth. Tractor segment witnessed strong demand, with both listed players posting close to 50% YoY growth in volumes, along with a positive outlook ahead. Overall, sector momentum has turned positive after GST rate cuts.

Globally, investors await U.S. S&P Services PMI and Non-Manufacturing PMI data later today. Positive momentum is likely to sustain in the market, aided by accommodative monetary policy, a supportive monsoon season, and festive-led demand recovery.