Stock Market Shakes Off Midweek Swings, Closes Week On A Strong Note

From a technical standpoint, the Nifty 50 formed a bullish candlestick pattern with higher highs and higher lows, indicating a continuation of the recent uptrend

Despite the upbeat mood, concerns remain around rising geopolitical tensions and trade policy uncertainty

Source : PTI

Indian equity markets closed last week on a strong footing, with both key indices breaking past crucial resistance levels. The rally was driven by sustained institutional interest and resilience despite geopolitical challenges, according to analysts.

On Friday, the Nifty 50 made a decisive move above the 25,000 threshold, closing at 25,112.40 with a gain of 319.15 points, or 1.29 per cent. The BSE Sensex followed suit, ending at a record high of 82,408.17 after rising 1,046.30 points, also up 1.29 per cent.

“Relentless inflows from institutional investors — both Foreign Institutional Investors (FIIs) and Domestic Institutional Investors (DIIs) — acted as key tailwinds, offsetting headwinds from prevailing geopolitical uncertainties and reinforcing positive sentiment across the street,” noted Bajaj Broking Research in a report.

Technical Signals Point To Continued Uptrend

From a technical standpoint, the Nifty 50 formed a bullish candlestick pattern with higher highs and higher lows, indicating a continuation of the recent uptrend.

“Going forward, we anticipate the index to retest the upper boundary of the recent five-week consolidation zone, currently pegged near the 25,200 mark. A decisive breakout above this resistance band could open the door for an upward extension towards the 25,500 zone in the near term,” the research note added.

RBI's Supportive Policy Stance Aids Financial Stocks

Midweek volatility linked to escalating Middle East tensions and a brief spike in crude prices was ultimately shrugged off by investors. A positive trigger came from the Reserve Bank of India’s easing of project finance guidelines, which gave a lift to financial stocks.

“The RBI’s continued dovish tone — signalling potential rate cuts on validating subdued inflation — further reinforced market confidence, positioning monetary policy as a key stabilizing force amid global uncertainty,” said Vinod Nair, Head of Research at Geojit Financial Services, reported ANI.

Global Concerns Remain, Pharma Sector Under Watch

Despite the upbeat mood, concerns remain around rising geopolitical tensions and trade policy uncertainty. Analysts flagged investor caution in the pharmaceutical space due to the prospect of new reciprocal tariffs.

Markets are also closely watching international negotiations as the end of a 90-day window on tariff impositions approaches. Additionally, global cues from upcoming US GDP and inflation data, as well as India’s PMI readings, will be pivotal.

“Meanwhile, geopolitical uncertainty continues to loom, as statements from world leaders regarding possible military involvement in the Middle East keep markets on edge,” added Nair.