India's major stock indexes closed higher on Friday, with the Sensex up 0.75% and the Nifty gaining 0.79%. The rally was driven by a stronger rupee and optimism that the U.S. Federal Reserve will cut rates early next year.
The Sensex finished at 85,567.48, adding 638 points, while the Nifty ended at 26,172.40, up 206 points. Liquidity remained ample and foreign institutional investors (FIIs) were net buyers, supporting the upward move.
Analysts said the market’s positive tone is underpinned by expectations of further Fed easing in 2026 and a firming rupee. They noted that gold reached a record high on the back of rate‑cut hopes and central‑bank buying. However, they cautioned that trade talks, geopolitical tensions and oil‑price swings could keep investors on edge.
The Nifty broke out of a falling‑wedge pattern, indicating short‑term bullish momentum. The Relative Strength Index (RSI) showed a downward‑consolidation breakout, suggesting strong positive energy. As long as the index stays above 25,900, a "buy‑on‑dips" approach could work, with resistance around 26,315.
Out of 4,501 BSE‑listed stocks that traded on Monday, 2,794 advanced, 1,515 fell and 192 were unchanged, indicating a broadly bullish mood.
Remember, these insights are for informational purposes only and not a prediction. Always do your own research before making any investment decisions.
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