Axis Bank, Asian Paints Lead Gains as Nifty and Sensex Close Higher on Friday

Indian equity markets closed the week on a positive note, with both the Nifty 50 and the Sensex registering modest gains on Friday. The Nifty 50 index advanced 0.34 percent, settling at 23,140.50 points, while the Sensex increased by 0.43 percent to finish at 73,895.74 points. Despite the upward movement, overall gains remained limited as concerns related to fluctuating crude oil prices and elevated bond yields continued to influence investor sentiment.

Among the individual stocks, Axis Bank and Asian Paints emerged as the strongest performers, driving the market higher. On the other hand, Max Healthcare and Infosys were notable decliners, reflecting mixed results within key sectors.

The broader market showed a varied picture. The NSE Nifty Midcap 100 index slipped by 0.14 percent, while the Nifty Smallcap 100 managed a slight increase of 0.15 percent. This divergence highlighted a cautious approach among investors amid ongoing macroeconomic uncertainties.

Volatility in the market eased somewhat during the session. The India VIX, which measures market expectations for near-term volatility, dropped by 4 percent, closing at 12.18. This reduction suggests a marginally calmer trading environment compared to previous sessions.

Sector-wise, the Nifty Auto and Nifty Consumer Durables indices showed resilience, each climbing nearly 1 percent. Conversely, the Nifty IT and Nifty Pharma sectors ended lower, weighed down by weak performances from some of their key constituents.

Market breadth was positive on the NSE, with 1,925 stocks advancing against 1,594 stocks declining, while 128 shares remained unchanged. This broad-based participation in gains underscores sustained buying interest despite some headwinds.

Technical analysts remain cautious about the short-term outlook for the Nifty 50. Rupak De, Senior Technical Analyst at LKP Securities, pointed out that the index continues to form lower highs and lower lows and is trading below its crucial moving averages. He noted that the Relative Strength Index (RSI) on the weekly chart has turned bearish, signaling potential downside momentum.

De identified immediate support levels at 23,000 and 22,700, with resistance expected around 23,200 to 23,300 points. According to him, a sustained move above 23,300 could improve the technical picture, while a decisive break below 23,000 might renew the downward trend.

India's equity markets have been navigating a complex environment shaped by global economic pressures, fluctuating commodity prices, and domestic policy developments. These factors contribute to cautious trading patterns and sector-specific variations in performance.

As investors prepare for the coming weeks, attention will likely remain on crude oil price movements, interest rate trends, and corporate earnings reports. Market participants are also monitoring broader economic indicators that could influence India's growth trajectory and market sentiment.

Disclosure: This report was authored by Kumar Gaurav, who is not registered with SEBI as a Research Analyst or Investment Adviser. The views expressed reflect those of the respective analysts and brokers cited and do not represent the opinions of The Economic Times Digital or its journalists. Readers should consider their own research and consult qualified advisors before making investment decisions.