Weekly Market Wrap: Nifty gains 0.74% in choppy week as broader markets rally
Markets staged a recovery after early pressure from rising crude prices and rupee weakness, while easing West Asia tensions and strong auto earnings boosted sentiment in broader markets.
The broader market stole the spotlight this week, with midcap and small-cap indices significantly outperforming the front-line Sensex and Nifty 50. (AI Image)
The Indian stock market experienced a volatile but ultimately recovery-focused week. Markets initially struggled with a sharp spike in crude oil prices and record rupee depreciation, but rallied in the mid-week following reports of easing geopolitical tensions between the US and Iran.
The broader market stole the spotlight this week, with midcap and small-cap indices significantly outperforming the front-line Sensex and Nifty 50. As geopolitical tensions in West Asia showed signs of cooling, investors rotated capital into high-beta stocks.
“The auto sector was a strong performer led by encouraging April 2026 sales data and Q4 results. Most global equity markets witnessed various degrees of relief rally, with Korea, Taiwan and Japan being the strong performing markets over the past week. While domestic fundamentals remain decent, global macroeconomic and geopolitical shifts are expected to keep markets volatile,” said Shrikant Chouhan, Head Equity Research Kotak Securities.
The market sentiment depends on the news flow with respect to the Middle-East conflict. Further, stock-specific action will continue based on Q4FY26 results and management commentary.
During the last week, the benchmark indices witnessed range-bound activity. On weekly basis, the Nifty ended 0.74 per cent higher, while the Sensex was up by 410 points. Among sectors, Capital Market, Auto, and Defence indices outperformed, rallying over 5 per cent, whereas some profit booking was observed in selective IT and Oil & Gas stocks.
During the week, the market experienced range-bound activity. On the downside, it found support near 24,000/76500, while on the upside, profit booking was seen near the 24,400/78000 resistance mark.
Technically, for Nifty on the lower side, 24,000 or the 50-day Simple Moving Average (SMA) and for Sensex 76500 would act as a crucial support zone for traders. As long as the market trades above this level, the bullish sentiment is likely to continue.
On the higher side, 24,400/78000 would be the immediate resistance zone. A successful breakout above 24,400/78000 could push the market up to 24,500-24,700/78300-78900. Conversely, if the market falls below 24,000/76500, selling pressure is likely to accelerate. Below this level, the market could retest 23,800/75900, with further downside potentially dragging it to 23,650-23,600/75400-75200.
“For Bank Nifty, it is currently trading below the 50 and 20-day SMAs, which is largely negative. We believe that 56,000, or the 50-day SMA, will be an important reference point for short-term traders. Below this level, the index could slip to 54,000-53,500. On the upside, a move above 56,000 could increase the chances of reaching 56,800-57,000,” said Amol Athawale, VP Technical Research, Kotak Securities.
