The Indian equity markets delivered a strong and confidence-boosting performance over the past week, shrugging off early caution to end firmly in positive territory. Both frontline indices — Nifty 50 and Bank Nifty — not only recovered from key support levels but also went on to register fresh all-time highs by the end of the week.
The rally was marked by improving sentiment, healthy participation from broader markets, and strong sectoral leadership, particularly from metals and PSU banking stocks. Despite some pressure in defensive pockets like FMCG, the overall structure of the market remains constructive, reinforcing the “buy on dips” strategy for the near term.
This article provides a detailed breakdown of weekly index performance, sectoral trends, stock-specific action, technical levels to watch, and an outlook for the coming week.
Nifty 50: From Caution to Confidence
Weekly Performance Snapshot
The Nifty 50 ended the week at 26,329, registering a gain of 286 points or 1.1% on a week-on-week basis. While the absolute percentage gain may appear modest, the underlying price action and structure of the rally reflect strong bullish intent.
Early Week: Testing the Nerves
The week began on a cautious note as the index retested its crucial support zone near 25,800. This level had previously acted as a demand area, and market participants were keenly watching whether it would hold amid mixed global cues and some profit booking after the recent rally.
The initial hesitation was visible in intraday volatility, with buyers and sellers closely matched. However, the absence of aggressive selling pressure around support suggested that bulls were not willing to give up control easily.
Mid-to-Late Week: Momentum Picks Up
As the week progressed, sentiment improved significantly. A strong rebound from the 25,800 support zone acted as a catalyst for renewed buying interest. The index began forming higher highs and higher lows on the daily chart, a classic sign of an emerging uptrend continuation.
By Friday, the Nifty not only reclaimed all short-term moving averages but also surged to record a fresh all-time high, reinforcing bullish confidence. Importantly, this rally was not narrow or index-heavy; it was supported by participation across sectors and market capitalizations.
Broader Market Strength
One of the most encouraging aspects of the week was the outperformance of the broader markets. Mid-cap and small-cap indices posted stronger relative gains compared to the benchmark, indicating healthy risk appetite and underlying strength in the market.
Such broad-based participation often adds sustainability to rallies, as it reflects genuine investor confidence rather than short-covering or index-specific moves.
Key Levels to Watch (Nifty 50)
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Immediate Resistance: 26,500
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Immediate Support: 26,100
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Major Support Zone: 25,800
As long as the index holds above the 26,100–25,800 support band, the broader trend remains positive. Any dips towards these levels are likely to attract buying interest.
Bank Nifty: Financials Lead from the Front
Weekly Performance Snapshot
The Bank Nifty outperformed the broader market, closing the week at 60,151, up 1,140 points or 1.93%. The banking index once again proved to be the backbone of the rally, playing a decisive role in pushing headline indices to record highs.
Early Weakness, Strong Recovery
Similar to the Nifty, Bank Nifty started the week on a cautious footing. The index retested its key support zone near 58,700, an area that has previously seen strong buying interest.
Despite initial nervousness, sellers failed to press their advantage. The inability of the index to break below this support level signaled strength beneath the surface.
PSU Banks Steal the Show
As sentiment improved, Bank Nifty witnessed a sharp rebound. The rally was largely driven by significant outperformance in PSU banks, which outpaced their private-sector counterparts during the week.
Improved asset quality expectations, stable interest rate outlook, and renewed investor interest in value plays contributed to the strong move in PSU banking stocks. This shift in leadership added a fresh dimension to the ongoing rally.
Fresh All-Time High
By the end of the week, Bank Nifty surged to a new all-time high, underscoring the strength of the financial sector. The breakout was accompanied by strong volumes, further validating the move.
Key Levels to Watch (Bank Nifty)
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Immediate Resistance: 60,700
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Immediate Support: 59,500
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Major Support Zone: 58,700
The index remains firmly in an uptrend. As long as it sustains above 59,500, the bias remains positive, and any corrective dips are likely to be used as buying opportunities.
Sectoral Performance: Clear Winners and Losers
Top Gaining Sector: Nifty Metals
The NIFTY METALS index emerged as the top gaining sector of the week, reflecting strong buying interest in commodity-linked stocks.
What Drove the Metal Rally?
Several factors contributed to the outperformance of metal stocks:
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Improved global commodity sentiment
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Expectations of steady demand from infrastructure and manufacturing
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Attractive valuations after previous consolidation
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Increased risk appetite among investors
The sector showed strong relative strength and attracted both institutional and retail participation.
Major Gainers in Nifty Metals
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Hindustan Copper: +13.94%
Hindustan Copper was the standout performer, benefiting from strong momentum and renewed interest in copper-linked plays. -
JSW Steel: +7.89%
JSW Steel rallied on expectations of stable margins and sustained demand. -
National Aluminium Company (NALCO): +7.64%
National Aluminium gained on improved aluminium price outlook and strong volumes. -
Hindalco Industries: +6.05%
Hindalco continued its steady uptrend, supported by global cues and technical strength.
Overall, the metal sector’s performance indicates a return of cyclical leadership, which is often seen during sustained bull phases.
Top Losing Sector: Nifty FMCG
On the flip side, NIFTY FMCG was the top losing sector for the week. Defensive stocks underperformed as investors rotated towards cyclical and high-beta sectors.
Why FMCG Underperformed
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Profit booking after strong prior performance
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Sector rotation towards metals and banks
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Valuation concerns in select FMCG stocks
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Preference for growth and cyclical themes
While the decline does not necessarily signal a trend reversal, it highlights short-term pressure and relative underperformance.
Major Losers in Nifty FMCG
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ITC: -13.39%
ITC witnessed sharp selling pressure, making it the biggest drag within the FMCG space. -
Radico Khaitan: -6.39%
Radico declined amid profit booking after a strong rally in previous weeks. -
United Spirits: -3.28%
United Spirits remained under pressure as defensive buying waned. -
United Breweries: -1.69%
UBL saw mild correction but continues to hold key long-term supports.
Despite short-term weakness, FMCG remains structurally strong and may regain favor during periods of consolidation or volatility.
Market Breadth and Participation
One of the most encouraging signs during the week was strong market breadth. Advances outnumbered declines across several sessions, and participation was not limited to a handful of heavyweights.
Mid-cap and small-cap stocks continued to attract interest, suggesting that liquidity remains ample and risk appetite intact. Such conditions often support trend continuation rather than abrupt reversals.
Technical View: Trend Remains Up
From a technical standpoint, both Nifty and Bank Nifty remain in well-defined uptrends:
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Higher highs and higher lows on daily charts
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Strong rebounds from key support zones
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Breakouts to fresh all-time highs
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Supportive volume patterns
Momentum indicators continue to favor the bulls, although short-term overbought conditions cannot be ruled out after a sharp rise.
Outlook for the Coming Week: Buy on Dips Strategy Intact
Looking ahead, the overall outlook for Indian equities remains constructively bullish.
What to Expect
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Possible consolidation near resistance levels (Nifty 26,500; Bank Nifty 60,700)
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Shallow pullbacks towards support zones
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Continued sector rotation rather than broad-based selling
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Stock-specific opportunities in metals, PSU banks, and select cyclicals
Strategy
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Buy on dips remains the preferred approach
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Focus on sectors showing relative strength
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Avoid chasing extended moves; wait for healthy retracements
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Maintain disciplined risk management near key support levels
Final Thoughts
The past week reinforced the strength of the ongoing bull trend in Indian equities. Despite a cautious start, strong rebounds from key support levels, broad-based participation, and fresh all-time highs highlight the market’s resilience.
While short-term volatility or consolidation cannot be ruled out, the medium-term structure remains positive. As long as key support levels hold, dips are likely to present attractive opportunities rather than reasons for concern.
In summary, the market continues to reward patience, discipline, and a trend-following approach — and for now, the trend clearly favors the bulls.
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