For the second consecutive session, markets faced pressure, although the index managed to stay above its 21-day moving average support level around 24,140 at the close.
Sectorally, Nifty IT was the standout performer, followed by Nifty Capital Markets. Conversely, Nifty PSU Bank and Nifty Financial Services emerged as the lagging sectors.
Looking at individual stocks, Titan and Apollo Hospitals topped the gainers list, whereas SBI and Coal India were among the significant losers.
Nonetheless, broader markets continued to outperform the benchmark indices, with the Midcap index reaching a record high before finishing 0.15% lower at 61,911, while the Smallcap index extended its gains for the fourth consecutive session, also hitting a new peak.
Throughout the week, benchmark indices largely traded within a range amid a lack of strong directional impetus. Despite this unsettled trading environment, the Nifty wrapped up the week with a gain of 0.74%.
The overall market capitalisation of BSE-listed companies increased by over ₹10 lakh crore during the week.
Mahindra & Mahindra experienced the largest increase in market capitalisation, followed by Adani Ports, HDFC Bank, and Asian Paints. In contrast, SBI, Bharti Airtel, and TCS saw declines in their market values.
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Global signals remained encouraging, with US markets closing higher on Friday. The S&P 500 and Nasdaq Composite reached new record highs, spurred on by stronger-than-expected US jobs data, which bolstered confidence in the resilience of the American economy despite geopolitical issues in West Asia.
From a technical perspective, Sudeep Shah of SBI Securities noted that immediate support for the Nifty is located in the 24,000-23,950 range.
He mentioned that a sustained dip below this level could pull the index down to 23,800 and then 23,650 in the near term. Conversely, resistance is identified in the 24,330-24,350 range.
Rajesh Bhosale of Angel One pointed out that the 24,500-24,600 range poses a significant challenge for the Nifty. A decisive breakout above this zone might initiate a new rally towards 25,000-25,100.
Nilesh Jain of Centrum Finverse indicated that the broader market structure remains sideways-to-positive, with a gradual recovery towards 24,300-24,500 anticipated in the near future.
He also asserted that a vital support level is around the 50-DMA near 24,000.
Rupak De of LKP Securities observed that the index has dropped back below the 50 EMA after briefly surpassing it, signaling renewed weakness in market sentiment. Significant call writing at the 24,200 strike indicates cautious positioning.
According to De, if the Nifty remains below 24,200 on Monday, it could face further correction towards the 24,050-24,000 range, while a rebound above 24,200 might prompt a recovery towards 24,350-24,400.
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