The benchmark indices opened on a positive note and extended their uptrend for the 8th session in a row, aided by supportive global cues and optimism that the U.S. Federal Reserve may begin cutting interest rates next week. At close, the Sensex gained 355.97 points, or 0.44%, to settle at 81,904.70, while the Nifty rose 108.50 points, or 0.43%, to end at 25,114.00. On the sectoral front, performance was mixed, with notable gains seen in Nifty Financial Services, Metals, and Pharma, while Nifty FMCG, Media, and Oil & Gas indices underperformed. The broader market also moved in line with the benchmarks, as the Nifty Midcap 100 ended higher by 0.32% and the Small cap index advanced 0.64%. Defence stocks staged a strong rally, lifting the Nifty India Defence Index by over 4%.
Nifty Outlook
The index on the weekly chart has formed a bull candle with a higher high and higher low, signaling continuation of the up move for the second week in a row. Nifty in the process closed above the falling trendline joining the highs of July and August 2025, signaling strength and initial signs of reversal after the last two months' corrective decline. Nifty has immediate resistance at 25,200-25,250 levels being the confluence of the previous swing high and the 61.8% retracement of the entire decline (25669-24337). A decisive close above 25,250 would mark a trend reversal confirmation from the ongoing corrective phase and could potentially unlock further upside towards the 25,500 levels in the coming weeks. On the downside, immediate support is seen near the 24,900 levels, holding above the same will keep the bias positive. While short term support is placed at 24,600-24,700 levels.
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Bank Nifty Outlook
The Bank Nifty on the weekly chart has formed a bull candle with a higher high and higher low signaling extension of the pullback for the 2nd week in a row. Index in the last two weeks has seen a pullback from the 200-day EMA. Following a phase of consolidation around this crucial moving average, the index has absorbed selling pressure and is now positioning itself for the next leg of its up move. Index has immediate resistance at 55000 levels, a move above the same will open further upside towards 55,800 levels in the coming weeks. Immediate support is placed at 54,000 levels holding above the same will keep the bias positive.
