The Indian stock market witnessed another day of positive momentum as both the Sensex and Nifty 50 closed higher for the second consecutive session on Friday. The uptrend was fueled by strong global cues, buying in metal and telecom stocks, and expectations of robust earnings growth in H2 FY26.
- The BSE Sensex surged 223.86 points (0.28%) to close at 81,207.17.
- The Nifty 50 added 57.95 points (0.23%), settling at 24,894.25.
During the day, the Sensex moved between a high of 81,251.99 and a low of 80,649.57, marking a volatile session of over 600 points. The weekly performance remained strong, with the Sensex gaining 780.71 points (0.97%) and the Nifty 50 advancing 239.55 points (0.97%).
Market Sentiment Remains Positive Ahead of Earnings Season
Experts note that the Indian market outlook remains mildly bullish, supported by solid domestic fundamentals, earnings optimism, and foreign investor participation following the US Federal Reserve’s 25-basis point rate cut.
The metal, banking, and telecom sectors led Friday’s rally, while FMCG and IT stocks showed mixed trends. Investors are also eyeing the Tata Capital IPO and the geopolitical impact of the Israel-Hamas conflict, which could bring short-term volatility.
Nifty 50 Technical Analysis: Key Support and Resistance Levels
According to Vatsal Bhuva, Technical Analyst at LKP Securities, the Nifty 50 has shown strength by closing above its short-term resistance level, signaling a continuation of the bullish sentiment.
- Immediate Support: 24,750 (near 100-day EMA)
- Resistance Levels: 25,000 and 25,100
- Expected Trading Range: 24,750 – 25,100
Heavy put writing at 24,800 indicates strong support, while the highest open interest at 25,000 highlights a crucial resistance area. Analysts believe that as long as Nifty holds above 24,750, the index will likely maintain a mildly bullish bias.
Global Market Overview: Positive Trends Support Indian Indices
The global market environment continues to remain favorable for equities. Major indices in the US and Europe closed higher last week, driven by investor optimism after the Federal Reserve’s dovish stance and a cooling inflation trend.
Asian markets, too, reflected strength, led by gains in Japan and Hong Kong. The dollar index slightly weakened, while crude oil prices remained steady despite ongoing tensions in the Middle East amid the Israel-Hamas war.
This stability in global markets has provided a cushion for Indian equities, attracting steady Foreign Institutional Investor (FII) inflows.
Analyst Outlook: FII Flows, Valuation, and Earnings Growth
Vinod Nair, Head of Research at Geojit Financial Services, said that the Indian market’s valuation premium has now moderated compared to other emerging markets. This opens opportunities for incremental foreign inflows into India.
“We expect the ongoing momentum to be driven by strong H2 FY26 earnings and festive season demand. However, investors should stay cautious of global policy changes and trade disruptions that could trigger short-term corrections,” Nair added.
The Federal Reserve’s rate cut is expected to enhance liquidity and FII participation, further supporting the Indian market rally.
Top 8 Stocks to Buy or Sell Today
Market experts from Choice Broking, Anand Rathi, and Prabhudas Lilladher have identified the following stocks to watch today for short-term and intraday trading:
1. Indian Bank (Buy)
- Trend: Bullish
- Target: ₹640
- Stop Loss: ₹610
Indian Bank shows strong volume accumulation and momentum on daily charts, supported by rising moving averages.
2. Poonawalla Fincorp Ltd (Buy)
- Trend: Bullish
- Target: ₹460
- Stop Loss: ₹430
The stock is trading above key moving averages with strong support around ₹430, indicating potential for upside movement.
3. TVS Motor Company Ltd (Buy)
- Trend: Positive
- Target: ₹2,200
- Stop Loss: ₹2,120
The stock has broken out of a consolidation pattern, supported by high trading volumes and RSI strength.
4. JB Chemicals & Pharmaceuticals Ltd (Buy)
- Trend: Bullish
- Target: ₹2,180
- Stop Loss: ₹2,080
Strong fundamentals and positive sectoral outlook make this a preferred pick in the pharma space.
5. Punjab National Bank (Buy)
- Trend: Positive
- Target: ₹140
- Stop Loss: ₹128
PNB continues to exhibit strong bullish momentum, supported by institutional buying and healthy loan growth.
6. HBL Power Systems Ltd (Buy)
- Trend: Bullish
- Target: ₹750
- Stop Loss: ₹705
The stock is witnessing strong accumulation with breakout potential above ₹740 levels.
7. Techno Electric & Engineering Ltd (Buy)
- Trend: Positive
- Target: ₹1,250
- Stop Loss: ₹1,180
Technical charts suggest sustained strength with higher highs formation and robust RSI levels.
8. CG Power and Industrial Solutions Ltd (Buy)
- Trend: Bullish
- Target: ₹520
- Stop Loss: ₹490
CG Power is seeing strong buying interest and improved order inflows, indicating positive momentum ahead.
Market Outlook: What Investors Should Watch This Week
Investors should closely monitor:
- US inflation and policy data for clues on further Fed rate actions.
- Corporate earnings announcements from key Indian companies.
- Global geopolitical updates, especially the Israel-Hamas situation.
- Tata Capital IPO developments, which could drive sentiment in the financial sector.
The Nifty 50 is expected to trade in a range of 24,750–25,100 with buying opportunities on dips. Analysts advise maintaining a stock-specific approach with focus on quality midcaps and banks.
Conclusion
The Indian stock market remains optimistic heading into the new trading week, supported by strong technical setup, robust global cues, and improving FII inflows. With festive demand approaching and corporate earnings likely to strengthen in H2 FY26, investors are advised to maintain a bullish yet cautious outlook.
For investors, focusing on fundamentally strong stocks like Indian Bank, Poonawalla Fincorp, and TVS Motor could yield solid returns in the near term.
