India’s stock market showed mixed signals in the short, holiday‑filled week: the small‑cap index rose 1%, but foreign investors kept selling billions of rupees worth of shares.
Overall Market Movement
The broad BSE Sensex added 112 points (about 0.13%) to finish at 85,041, while the Nifty 50 climbed 75 points (0.29%) to 26,042.
Sector Highlights
- Defence: up more than 3%
- Metals: up 2.7%
- Media: up 1%
- PSU Banks: down nearly 1%
- IT and Pharma: each down 0.3%
Investor Flow: FIIs vs. DIIs
Foreign Institutional Investors (FIIs) sold shares worth about ₹4,291 crore during the week. In contrast, Domestic Institutional Investors (DIIs) were net buyers, purchasing roughly ₹12,024 crore of Indian equities.
What Drove the Moves?
Analysts point to a few key factors:
- Expectations of stronger domestic demand and easier liquidity.
- Hope that the U.S. Federal Reserve may ease policy in 2026.
- RBI’s liquidity actions (open‑market operations and a USD/INR swap) helped steady the rupee.
- Global risk appetite stayed muted because Japanese bond yields stayed high.
Technical Outlook for the Nifty 50
Short‑term momentum looks fragile. Analysts suggest that a clear break below the 20‑day moving average (around 26,200) could trigger further declines toward the 50‑day average (near 25,900). Conversely, moving above 26,200 may open the path to 26,250‑26,350.
Key Levels to Watch
- Support: 25,900 – 25,800
- Resistance: 26,250 – 26,350
Advice for Retail Traders
Given the mixed signals, many experts recommend a cautious “buy‑on‑dips” approach while taking profits near the higher resistance levels. Keep an eye on upcoming data releases such as industrial output, manufacturing PMI, and the U.S. Fed minutes, as they could sway sentiment.
Bottom Line
The market ended the week slightly higher, but the underlying sentiment remains cautious. Foreign investors are still pulling money out, while domestic players are stepping in. Retail investors should watch technical levels and upcoming economic data before making big moves.
Remember, this is just an overview, not a prediction. Do your own research or consult a certified advisor before trading.