Nifty reclaims 24,300 as banking and IT sectors lead Indian rally
Indian benchmark indices posted weekly gains driven by strong banking and IT sectors, suggesting resilient domestic demand despite lingering global headwinds.
Indian equities closed higher on Friday, with the Nifty 50 reclaiming the 24,300 level as strong earnings from the technology sector and broad-based buying in financials offset concerns over rising energy costs. The benchmark index rose 261.55 points, or 1.09%, to settle at 24,334.30.
The broader Sensex gained 0.75% to close at 78,151.45, securing a solid weekly advance. Information technology stocks led the charge, bolstered by robust first-quarter fiscal year 2027 results, with Tata Consultancy Services climbing nearly 10% over the week. Private banks also contributed significantly, while pharmaceutical and healthcare stocks experienced profit booking.
For market participants, the rebound is notable because it occurred despite a weaker domestic currency, elevated crude oil prices, and uncertainty surrounding global interest rates. The sustained buying suggests that domestic economic fundamentals are providing a floor for equities even as external pressures persist.
Technical indicators support this constructive outlook. The relative strength index strengthened to 58.48, while the put-call ratio improved to 1.13, reflecting a bullish undertone in the derivatives segment.
“Nifty formed a strong bullish candle on the daily chart and reclaimed the key 24,300 zone, while also closing above its short-term moving averages, reflecting improving price structure,” said Sumeet Bagadia, Executive Director at Choice Broking. “Significant Call Open Interest is placed at 24,300–24,500, while Put Open Interest remains concentrated at 24,300–24,200, indicating a strong support base.” He noted the index is approaching crucial resistance near its 200-day exponential moving average.
The Bank Nifty outperformed the broader market, jumping 939.15 points, or 1.63%, to settle at 58,521.40. Federal Bank, ICICI Bank, and Kotak Bank drove the banking index higher throughout the session.
Bagadia added that the banking index confirmed a decisive breakout above its recent consolidation range. “Support is placed at 58,000–58,100, while 58,800–59,000 remains the immediate resistance zone. A sustained move above this hurdle could extend the rally further, while the support zone is expected to attract buying on any near-term dip.”
Looking ahead to Monday's session, Bagadia identified Fineotex Chemical, NHPC, and IDFC First Bank as his top picks. He set target prices of ₹42.50 for Fineotex, ₹86 for NHPC, and ₹87.50 for IDFC First Bank.
