Nifty Outlook: Bullish Momentum Eyes 24,700 Level

Indian equity markets concluded last week with a third consecutive weekly gain, driven by improving investor sentiment and sustained buying interest across key sectors.

The Nifty 50 index held above the 24,100 level, forming a strong bullish Marubozu candle on the weekly chart, according to market expert Rajesh Palviya. This pattern indicates robust buying action with little to no trading range, suggesting conviction among buyers.

Palviya advised a ‘buy on decline’ strategy, noting that if the Nifty breaks above 24,400, it could trigger further upside toward the 24,600–24,700 range in the coming sessions.

The rally was supported by broad-based participation, with gains seen in the FMCG, defense, and banking sectors. Bank Nifty also showed strength, reflecting confidence in financial intermediation and credit demand.

Improving macroeconomic indicators, including moderating inflation and stable industrial output, have contributed to the positive sentiment. Foreign institutional investors returned as net buyers in the last week, while domestic institutional participation remained consistent.

Analysts noted that the market’s resilience comes despite global uncertainties, including fluctuating crude oil prices and geopolitical tensions. Domestic demand strength and corporate earnings visibility have provided a cushion.

Technical analysts highlighted that the Nifty’s ability to hold above key moving averages and the formation of higher lows suggest the uptrend may have further legs, provided it sustains above 24,100 on a closing basis.

Market participants are watching for cues from the upcoming monetary policy decision and quarterly earnings from large-cap companies, which could influence near-term direction.

As of the close on Friday, the Nifty 50 settled at 24,284, up 0.8% for the week, while the Sensex gained 0.7% to close at 79,812.