A slow and steady ascent has characterised the Nifty's third consecutive week of gains. Weak market breadth continues to unsettle investors, though the midcap index has bounced back

Moneycontrol Pro Market Outlook | Surge in GDP a double-edged sword for Indian investors?

Indian Equity Markets Extend Winning Streak to Third Consecutive Week

Indian equity markets have continued their winning streak, buoyed by a robust rally across global markets. The Nifty50 edged up 0.52 percent during the week, though the narrow market breadth remained a persistent concern.

Top Gainers: Reliance Industries led the pack, followed by Bajaj Finance, HDFC Bank, and ICICI Bank.
Sectoral Performance: Pharma, Media, PSU Bank, Metal, IT, and Private Bank indices each advanced between 1-2 percent.

However, Foreign Institutional Investors (FIIs) continued their selling, dumping equities worth Rs 3,659 crore even as markets climbed higher.

Global Markets React to Holiday-Shortened Week

US stock indices finished their holiday-shortened week on a strong note, lifted by dovish commentary from Federal Reserve officials and a series of weaker-than-expected economic reports.

India's GDP Surges to 8.2 Percent, a Six-Quarter High

India's GDP surged to 8.2 percent in the latest quarter, marking a six-quarter high and comfortably beating analyst forecasts.

While this robust growth figure presents something of a double-edged sword, markets are expected to greet this development enthusiastically when trading resumes on Monday.

Bullish Sentiments Continue to Dominate the Market

A slow and steady ascent has characterised the Nifty's third consecutive week of gains. Weak market breadth continues to unsettle investors, though the midcap index has bounced back and set a higher high.

Options Market Data: Puts have outnumbered calls at the close for several consecutive days, reflecting short covering by call option writers, while put selling—typically a bullish action—suggests traders see limited downside risk ahead.
20-Day A/D Ratio: The reading is close to the oversold zone and indicates a potential rally in stocks ahead.
Client Positions: Clients as a group are continuing to reduce their long market positions, aligning with a bullish market trend.

Sector Rotation

Nifty 50 – The Benchmark Index ended higher by +0.52% this week and closed at 26202.95.

Leading Quadrant: Nifty Bank continued its journey into the leading quadrant, gaining both momentum and relative strength.
Weakening Quadrant: The Nifty MNC is seeing a sharp drop in momentum and relative strength week-on-week.
Improving Quadrant: Nifty Private and Nifty Financial Services gained momentum and relative strength.
Lagging Quadrant: Nifty Realty, Nifty IT and Nifty Energy have entered the weakening quadrant this week.