Sensex jumps 447 pts, Nifty above 25,950; will rally continue next week?

Domestic equity benchmarks Sensex and Nifty snapped their four-day losing streak to close higher on Friday as upbeat global cues and a softer-than-anticipated U.S. inflation print lifted investor sentiment.

At closing bell, the Sensex rose 447.55 points, or 0.53%, to settle at 84,929.36, while the Nifty closed 150.85 points or 0.58% higher to finish at 25,966.40.

Vatsal Bhuva, Technical Analyst at LKP Securities, said that the weekly chart shows the formation of a doji candlestick, reflecting growing indecision among market participants and a lack of clear directional conviction. Adding, “In Friday’s session, the index once again failed to close above its 10-day SMA, keeping short-term sentiment cautious.”

“A few more consolidation sessions are expected, with the index likely to trade in a narrow range between 58,800 and 59,500 levels. The undertone remains bearish as the index continues to stay below its short-term moving averages. A decisive breakout above 59,500 or a breakdown below 58,800 will determine the next directional move. Immediate support is placed at 58,800, while resistance stands at 59,200 and 59,500 levels," Bhuva said.

Bharat Electronics (BEL) emerged as top gainer on the Sensex, gaining 2.38% to Rs 392.80. Tata Motors PV followed with a 2.36% rise, while Power Grid Corporation of India, Reliance Industries (RIL), Asian Paints and Bajaj Finserv Cement climbed 2.25%, 1.39%, 1.09% and 0.97%, respectively. 

Five stocks, namely RIL, HDFC Bank, L&T, BEL and Power Grid, contributed heavily to the Sensex’s gain.     

Among sectoral indices, the BSE Auto index climbed 1.24% to close at 61,533.18, while the BSE Capital Goods also gained 1.65% to settle at 66,534.02.

Shares of Shriram Finance rallied sharply to a fresh all-time high of Rs 914.10 after the NBFC confirmed a strategic investment by Japan’s MUFG Bank. The global banking major will pick up a 20 per cent stake in the company.

In Sensex constituents, Titan Company climbed to a fresh 52-week high of Rs 3,962 during the session.

Overall, of the 4,331 actively traded BSE stocks, 2,734 closed higher, 1,432 declined, and 165 remained unchanged. During the session, 100 stocks touched their 52-week highs, while 179 fell to 52-week lows. Meanwhile, 179 scrips hit their upper circuits, and 161 were locked in lower circuits.

Vinod Nair, Head of Research at Geojit Financial Services, observed that global equities advanced following a lower-than-expected US CPI print, which strengthened hopes for a less hawkish stance from the Federal Reserve. However, he cautioned that investor confidence remains tempered by lingering concerns over the reliability of economic data, stemming from disruptions caused by the recent US government shutdown.

“Investors now look for signals on the Fed’s 2026 easing trajectory. Meanwhile, the BoJ raised its policy rate by 25 bps to a three-decade high, a move that could reshape global liquidity trends. Domestically, strong global cues and bargain hunting lifted indices, with large-cap stocks leading gains,” Nair said

“Oil prices continued to soften on oversupply concerns and subdued growth outlook. While sentiment remains constructive, near-term volatility may persist amid uncertainty over trade deal timelines and upcoming macro data releases," Nair added. Rupak De, Senior Technical Analyst at LKP Securities, said the 50-pack index has witnessed a breakout from a falling wedge pattern, indicating improving market sentiment. 

“Additionally, the index has reclaimed the 21-day EMA on the daily chart. After finding support near the 50-day EMA, the index recovered towards the 26,000 mark. Going forward, 26,000 will be a key level to watch; a decisive move above this level could propel the index towards 26,300. On the downside, immediate support is placed at 25,900, which is likely to act as the first line of defense for the Nifty," De said.