Nifty Wraps Week Positive: Sustainability in Question

Indian equity markets closed the week with strong gains, with the Nifty rising 1.29% supported by solid domestic economic data and policy reforms.

Key economic indicators like Q1 GDP growth at 7.8%, steady FDI inflows, and a smaller current account deficit have boosted investor confidence.

Despite these positives, global challenges and heavy FII selling over the last two months (₹94,600 crore) still pose risks.

Sector-wise, the picture is mixed. While the overall market outlook is positive, weakness in banking and IT is restraining gains. A rebound in these sectors is crucial for the uptrend to sustain.

Technically, the index faces immediate resistance at the 24,950–25,000 zone, with support positioned at 24,500–24,400.

A decisive breakout from this range is needed to establish the next directional trend; otherwise, the market is poised for a period of consolidation.