Nifty, Sensex post strong weekly gains over sustained crude price correction

The domestic markets shifted from defensive caution at the start of the week to growing optimism by the close. The early week was marked by profit-booking due to scepticism over the durability of the US-Iran peace arrangement, muted expectations ahead of the upcoming earnings season, and a patchy start to the monsoon. 

"Easing tensions around the Strait of Hormuz weighed on crude oil prices, while dovish commentary from the Fed Chair, coupled with softer US labour market data, reinforced expectations of a more accommodative global interest-rate environment," analysts said.

Further, domestic sentiment received an additional boost from optimism surrounding the India-Japan summit, with investors anticipating progress across trade, defence, semiconductors, AI collaboration, and a proposed rupee-yen settlement framework.

On the sectoral front, real estate, pharma, and healthcare stocks outperformed, whereas PSU banks and energy counters lagged. The IT sector staged a notable rebound, due to short covering, and a strengthening investment narrative around Indian IT firms' role in enterprise AI adoption.

Broad market indices performed almost in line with benchmark indices, as Nifty Midcap100 added 0.64 per cent, while Nifty Smallcap100 rallied 2.05 per cent during the week.

According to analysts, immediate resistance levels for Nifty are placed at the 24,400 level and the 24,200 level is expected to provide immediate support, followed by the 24,000 level.

Immediate support for Bank Nifty is placed in the 57,600–57,500 zone, while resistance is seen at 58,200–58,300 zone.

Investors remain keen on US FOMC minutes, domestic earnings season, monsoon progress, credit growth trends, and ongoing trade negotiations with Japan, the UK, and the US.

"While risks persist amid downward revisions to earnings growth estimates, monsoon-related inflation concerns, and continued FII caution, much of the visible uncertainty appears to be priced in, leaving room for a constructive read on incremental positives," a market participant said.