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Stock market recap: Indian equities shrugged off a sharp global selloff to extend their winning streak to a seventh straight session on Fridau, with the benchmark Nifty 50 reclaiming the 25,000 mark on strong buying in large-cap banks and financials.
The Nifty surged 493.75 points, or 2.01%, to close at its day's high of 25,030.35, while the Sensex jumped 1,718.01 points, or 2.17%, to settle at 81,028.02. The benchmarks gained about 8.6% over the week.
Sentiment was supported by nearly ₹15,000 crore in record foreign buying on Thursday and a 0.6% rise in the rupee to 93.91 against the dollar, even as Brent crude rebounded to around $97 a barrel.
Banks and financials led the gains, with the Bank Nifty rising 2.27%. Consumer durables and pharmaceuticals also advanced. ICICI Bank gained about 5%, while M&M and Titan rose around 3% each. Tata Motors Passenger Vehicles, Eicher Motors and Grasim, however, lagged.
The broader market was less buoyant, with mid- and small-cap stocks underperforming. A total of 1,439 stocks advanced, 2,141 declined and 126 remained unchanged.
AXISBANK (current market price ₹1,322.90)
Indian equities had a strong week, with the Nifty and Bank Nifty extending their recovery amid improving global cues, easing crude oil prices, robust second-quarter earnings and sustained foreign institutional buying. On Friday, 6 November, the Nifty climbed from the 23,000 zone to reclaim 25,000, while Bank Nifty crossed key resistance levels and participated strongly in the rally.
Financials, FMCG, autos, realty and select consumption stocks led the advance, reflecting an improvement in risk appetite. Strong foreign institutional investor (FII) participation, coupled with declining US bond yields and moderating crude prices, also eased macroeconomic concerns and supported market sentiment.
The Nifty 50 ended the week at 25,030.35, posting one of its strongest weekly advances in recent months. It recorded seven consecutive sessions of gains and rose more than 8% from its recent lows, reflecting a combination of aggressive short covering and fresh long positions. Bank Nifty also strengthened considerably, supported by buying in private-sector banking heavyweights and improving investor confidence.
While PSU banks underperformed in some sessions, financials remained a key driver of the broader recovery. FMCG stocks stood out following strong earnings from consumer companies, while autos, realty and financial services provided further support. IT stocks, which had led the previous phase of the rally, witnessed profit booking towards the latter part of the week, although the broader market trend remained constructive.
Sustained buying in the Nifty has reinforced the bullish sentiment, drawing even sidelined investors back into the market. We have maintained that the consolidation phase was nearing its end and that a close above 23,100 could signal a positive shift in sentiment. The market has respected that level and continued to move higher since.
Derivatives data also point to a decisive shift in favour of the bulls. Significant put open interest accumulation around the 24,500 strike indicates that traders increasingly view this level as an important support zone. On the upside, the highest call open interest has shifted towards the 25,000 strike, suggesting that resistance is moving higher.
The rally has also been accompanied by short covering in index futures, as traders unwound bearish positions built during October's correction. Falling volatility has further supported sentiment, with India VIX cooling as confidence returned to the market. The improving open interest structure suggests that market participants are increasingly positioning for a continuation of the uptrend rather than a reversal.
Raja Venkatraman is co-founder, NeoTrader. His Sebi-registered research analyst registration no. is INH000016223.
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Raja Venkatraman is the co-founder of NeoTrader, where he heads the training division. He conducts both offline and live market workshops, seminars, and webinars. He has been working under the guidance of Dr C K Narayan, his mentor and founder of Growth Avenues, for more than 20 years. He is an active trader in multiple asset classes, and actively shares his views on YouTube, blogs at NeoTrader, and on reputed news channels and websites. His Sebi-registered research analyst registration no. is INH000016223.
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