Markets ended their five-week-long consolidation phase, buoyed by improving global cues, receding geopolitical risks, and a noticeable pickup in foreign institutional investor (FII) buying during the latter half of the week. After a hesitant start, momentum built during midweek as overall sentiment turned more constructive.
With tensions between Iran and Israel showing signs of easing, global risk appetite improved, driving indices higher. Consequently, benchmark indices closed the week near their highs, with the Nifty settling at 25,637.80 and the Sensex at 84,058.90.
Sectorally, the market breadth tilted positive with most NSE indices in the green. Nifty Oil & Gas outshone peers with a 1.19% uptick, followed by Nifty Infrastructure and Nifty Energy, which climbed 1.07% and 1%, respectively. PSU Banks, Pharma, Metals, and Media also posted moderate gains, rising between 0.4% and 0.7%. Financial heavyweights saw mild traction, with Nifty Bank and Nifty Private Bank edging up 0.41% and 0.32%, respectively.
On the flip side, Nifty Realty emerged as the biggest drag, slipping 1.55%, while IT and Consumer Durables sectors witnessed mild profit-taking. Meanwhile, market volatility cooled further, with India VIX declining 1.9% to 12.36, signaling a more stable undertone.
“Index has formed a sizable bull candle with a higher high and higher low signaling continuation of the up move. Index in the process on expected lines closed firmly above the last 6 weeks range (25,200-24,500), signaling extension of the positive momentum,” said a note by Bajaj Broking.
“Going ahead, index to maintain overall positive bias and head towards 25,900-26,000 levels in the coming week, being the measuring implication of the last week's range (25,200-24,500). The upper band of the recent consolidation range, 25,100-25,200 is likely to reverse its role and act as key support in coming weeks,” the note added.
Here are the key factors that will likely impact the D-Street action this week:
The rupee gained 1.3% on the week, its best performance in two and a half years, to close at 85.4750 per U.S. dollar on Friday.
“A buy-on-dips strategy appears more appropriate at current levels, following the sharp rise over the past few days. On the downside, support is placed at 25,500; a break below this level could lead to consolidation,” said Rupak De, Senior Technical Analyst at LKP Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
With tensions between Iran and Israel showing signs of easing, global risk appetite improved, driving indices higher. Consequently, benchmark indices closed the week near their highs, with the Nifty settling at 25,637.80 and the Sensex at 84,058.90.
Sectorally, the market breadth tilted positive with most NSE indices in the green. Nifty Oil & Gas outshone peers with a 1.19% uptick, followed by Nifty Infrastructure and Nifty Energy, which climbed 1.07% and 1%, respectively. PSU Banks, Pharma, Metals, and Media also posted moderate gains, rising between 0.4% and 0.7%. Financial heavyweights saw mild traction, with Nifty Bank and Nifty Private Bank edging up 0.41% and 0.32%, respectively.
On the flip side, Nifty Realty emerged as the biggest drag, slipping 1.55%, while IT and Consumer Durables sectors witnessed mild profit-taking. Meanwhile, market volatility cooled further, with India VIX declining 1.9% to 12.36, signaling a more stable undertone.
“Index has formed a sizable bull candle with a higher high and higher low signaling continuation of the up move. Index in the process on expected lines closed firmly above the last 6 weeks range (25,200-24,500), signaling extension of the positive momentum,” said a note by Bajaj Broking.
“Going ahead, index to maintain overall positive bias and head towards 25,900-26,000 levels in the coming week, being the measuring implication of the last week's range (25,200-24,500). The upper band of the recent consolidation range, 25,100-25,200 is likely to reverse its role and act as key support in coming weeks,” the note added.
Here are the key factors that will likely impact the D-Street action this week:
1. Global developments:
Looking ahead, global cues will continue to drive market direction. Despite improved sentiment, caution persists regarding potential tariff escalations, with U.S. tariffs scheduled to resume from July 9 and updates on trade agreements will remain in focus.2. US-China trade taks:
The U.S. President recently announced on a social media platform the signing of a deal with China and indicated a potential deal with India, although details remain scant. Further clarity on these developments will be closely monitored by the market.3. Domestic high-frequency data:
Domestically, high-frequency data such as IIP and PMI figures will be in focus, along with the monsoon progress.4. FII activity:
The trend in foreign institutional investor (FII) flows will also be closely monitored. On Friday, foreign institutional investors (FIIs) were net buyers at Rs 1,504.93 crore, while the domestic institutional investors (DIIs) were net sellers at Rs 765.82 crore.5. Crude prices:
Brent and U.S. West Texas Intermediate crude prices fell on Friday, reversing gains after a report that OPEC+ was planning to hike production in August following an increase planned for July.6. Currency movement:
The Indian rupee had its best week since January 2023, as an Iran-Israel ceasefire cooled oil prices and sapped safe-haven dollar demand, while worries over the Federal Reserve's future independence added pressure on the greenback.The rupee gained 1.3% on the week, its best performance in two and a half years, to close at 85.4750 per U.S. dollar on Friday.
7. Technical factors:
"The Nifty continued to move higher as investor confidence remained strong. With no major resistance seen before 25,750–25,800, the index may continue its upward trajectory. However, the rally might not be sharp, and it could take time to reach the 25,800 mark.“A buy-on-dips strategy appears more appropriate at current levels, following the sharp rise over the past few days. On the downside, support is placed at 25,500; a break below this level could lead to consolidation,” said Rupak De, Senior Technical Analyst at LKP Securities.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
