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On Friday, the Nifty 50 advanced 0.99% to close at 24,853.15, reflecting broad-based strength across key sectors. The uptrend was underpinned by easing US treasury yields, which enhanced global risk sentiment and spurred foreign inflows into Indian equities. Notable gains in IT, FMCG, and Financial stocks provided significant support to the index. Stable Indian rupee and crude oil prices further bolstered investor confidence. Overall, market sentiment remained positive, driven by optimism around improving macroeconomic fundamentals despite prevailing global uncertainties.

Multi Commodity Exchange of India Ltd (current price: ₹6,492.50)

Why it’s recommended: Financial strength, growth, risk management, and infrastructure

Key metrics: P/E: NA | 52-week high: ₹ 7,048.60 | Volume: ₹ 287.08 crore

Technical analysis: Cup-with-handle-base breakout

Risk factors: Regulatory risks, operational risks

Buy at: ₹6,492.5

Target price: ₹7,770 in three months

Stop loss: ₹5,918

Relaxo Footwears Ltd (current price: ₹ 446.65)

Why it’s recommended: Strong brand portfolio, market position, and schools reopening

Key metrics: P/E: 64.26 | 52-week high: ₹ 949 | Volume: ₹17.27 cr

Technical analysis: Trendline breakout

Risk factors: Input cost volatility, intense competition

Buy at: ₹446.65

Target price: ₹520 in three months

Stop loss: ₹418

The Nifty 50 posted gains on Friday, forming a bullish candlestick on the daily chart. However, on a weekly basis, the index declined approximately 0.69%, resulting in a bearish weekly candle.

Indian equities opened on a firm note and maintained positive momentum throughout the session. The index found support near its 21-day exponential moving average (around 24,445) on Thursday, and rebounded strongly on Friday. Barring the pharma sector, all NSE sectoral indices ended in the green, with IT, FMCG, and financials leading the rally. Market breadth improved notably, with an advance-decline ratio of 3:2 in favour of advancing stocks.

The Nifty 50 continues to trade below 25,000, having closed below this level on a weekly basis. Nonetheless, the index remains positioned above all its key moving averages on the daily and weekly timeframes, indicating a structurally positive trend despite the recent consolidation phase. On the daily chart, the relative strength index (RSI) turned higher on Friday, holding in bullish territory around 59, suggesting a temporary loss of momentum rather than a trend reversal. The daily MACD maintains a negative crossover. Both RSI and MACD on the weekly timeframe are trending upward, reflecting an underlying positive bias.

According to O'Neil’s methodology of market direction, the Nifty 50 transitioned from a "Rally Attempt" to a “Confirmed Uptrend".

The Nifty 50 traded with a positive bias on Friday, closing near the day’s high and recouping a portion of the week’s earlier losses. Price action over the past week indicates a support zone in the 24,400–24,450 range, while resistance is seen near 25,000–25,100. A decisive breakout on either side could set the directional tone for the index. Given the prevailing bullish sentiment and favourable market conditions, the index appears poised to potentially surpass 25,000–25,200 in the coming days.

On Friday, the Bank Nifty opened flat and gained steadily throughout the session, closing 0.83% higher and forming a bullish candlestick on the daily chart. The rally was primarily driven by strong buying interest in heavyweight private sector banks. The index traded between 54,854 and 55,441 before settling at 55,398. On the other hand, the Nifty Financial Services (FINNIFTY) advanced nearly 1%, also forming a bullish candle, reflecting broader strength across the financial sector.

Despite the positive daily performance, the Bank Nifty remained range-bound over the past week, ending with marginal gains and forming a Doji candle on the weekly chart with a long lower shadow, indicating buying support at lower levels. Technically, the index continues to trade above all its key moving averages on both daily and weekly timeframes, suggesting a supportive structure.

Momentum indicators present a mixed picture. On the weekly timeframe, the RSI and MACD are trending upward, indicating a bullish medium-term bias. However, on the daily chart, the RSI has flattened, and the MACD remains in a negative crossover, pointing to ongoing short-term consolidation. This divergence suggests that the index is in a holding pattern, awaiting a decisive breakout to determine its next directional move.

According to O'Neil’s methodology of market direction, the Nifty Bank transitioned from an "Uptrend Under Pressure" to a “Confirmed Uptrend".

The Bank Nifty is currently trading in a sideways range with a positive bias and requires a decisive breakout above 56,000 to signal a continuation of the bullish trend. However, sustained trading below this level may keep the index confined within its current consolidation zone. The broader sentiment remains positive, and a breakout and close above 56,000 could open the door for an upward move toward 57,500–58,800 in the near term. On the downside, immediate support is identified around 54,500.

MarketSmith India is a stock research platform and advisory service focused on the Indian stock market. It offers tools and resources to help investors make informed decisions based on the CAN SLIM methodology, developed by legendary investor William J. O'Neil. You can access a 10-day free trial by registering on its website.

Trade name: William O’Neil India Pvt. Ltd.

Sebi Registration No.: INH000015543

Disclaimer: The views and recommendations given in this article are those of individual analysts. These do not represent the views of Mint. We advise investors to check with certified experts before making any investment decisions.

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