Markets Extend Rally For Second Week As Sentiment Improves On Global Developments

Indian stock markets ended the week on a positive note, marking a second straight week of gains, supported by improved global sentiment following a ceasefire between the United States and Iran.

The Nifty 50 closed at 24,050, registering a weekly rise of nearly 6 per cent, while also posting gains on the final trading session. The BSE Sensex finished at 77,550, advancing over 900 points on Friday and recording a weekly increase of close to 5.8 per cent.

Market participants attributed the rally in part to strong short covering and renewed investor confidence, as easing geopolitical tensions lifted risk appetite.

Banking stocks led the uptrend, with the Nifty Bank outperforming broader indices. The index ended the week at 55,912, delivering a sharp weekly jump of more than 8 per cent and nearly 2 per cent gains on Friday alone.

Technical indicators suggest continued strength, with key support expected in the lower 53,000 range and resistance levels seen near the 57,000 mark.

Analysts observed that the broader market trend remains constructive, with buying interest visible across segments.

For the Nifty, immediate support is placed in the 23,150–23,500 zone, while resistance is likely to emerge between 24,500 and 25,000.

Volatility eased during the week, with the India VIX declining by over 7 per cent to settle at 18.85. This indicates reduced market anxiety, although uncertainty remains due to questions surrounding the durability of the geopolitical truce.

Sector-wise, real estate, capital market and financial stocks saw the strongest gains over the week, reflecting broad-based participation in the rally.

Mid- and small-cap indices also moved higher in line with benchmark indices, suggesting wider market strength beyond large-cap stocks.

Key Factors to Watch Ahead

Looking ahead, investors will likely closely track developments in US–Iran negotiations, fluctuations in crude oil prices, and trends in foreign investment flows, which could influence market direction in the near term.

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