Nifty, Sensex Jump Over 4.5% Amid Shortened Week Of Trading

Indian benchmark indices ended the week on a robust note, posting an impressive gain of over 4.5 per cent, buoyed by favorable cues from both domestic and global fronts, according to market analysts on Saturday. The markets kicked off the week with strong upward movement and maintained a steady positive trajectory in the following sessions, reflecting improving investor sentiment.

Throughout the week, optimism was driven by encouraging economic indicators, easing global uncertainties, and supportive policy signals, which together contributed to renewed buying interest across sectors. As a result, the rally sustained its momentum, culminating in both key indices closing the week near their peak levels. The Nifty settled at 23,851.65, while the Sensex ended at 78,553.20, marking a significant recovery and highlighting a strong bullish undertone in the market.

Positive Momentum 

“The Nifty index has been trading within a range of 21,700–23,800 for the past couple of months and has now reached the higher end of this range. It has also reclaimed important moving averages -- the 100 and 200-day EMAs,” said Ajit Mishra, SVP, Research, Religare Broking Limited.

“As the positive momentum continues, there is potential for the index to target the 24,250–24,600 zone in the coming weeks,” he added.

Banking stocks emerged as the top performers during the week, driven by a combination of encouraging macroeconomic factors. A drop in retail inflation, coupled with a promising monsoon forecast, sparked renewed optimism among investors, increasing expectations of potential interest rate cuts by the Reserve Bank of India (RBI).

Tariff Pause

Market sentiment was further lifted by positive developments on the trade front, including the postponement of certain tariffs and continued exemptions on select goods. These measures fueled hopes of easing global trade tensions soon.

Adding to the upbeat mood, global markets remained relatively stable, with no major negative surprises, which contributed to sustaining investor confidence. Together, these factors provided strong support to the market rally throughout the week.

“The decline in the volatility index (India VIX) also signals a reduction in market uncertainty after a period of recent volatility. Looking ahead, the current recovery trend seems likely to continue. A ‘buy on dips’ strategy is recommended as long as the Nifty stays above the 23,000 mark,” Mishra noted.

According to a research report by Bajaj Broking, market volatility is likely to stay elevated in the near term, driven by ongoing tariff-related developments and the unfolding of the Q4 earnings season. “Dips, if any, in the coming week should be used as buying opportunity with key support placed at 23,200 levels,” the report said.

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