Indian equity benchmarks ended the week with robust gains on Friday, September 12, led by sustained optimism in global markets. The Nifty 50 recorded its eighth consecutive day of gains, while the Sensex rallied over 355 points, signalling investor confidence.
The broader rally was supported by favourable U.S. labour market data, which offset concerns about higher-than-expected inflation. Positive global cues have renewed hopes of potential interest rate cuts by the Federal Reserve, while optimism over India-US trade discussions added fuel to the markets.
Sectoral performance was mixed. Pharma, IT, auto, and financials were the key drivers, whereas FMCG, PSU banks, media, and real estate faced some pressure. This indicates that while the overall sentiment remained positive, certain sectors continue to grapple with challenges.
Key Index Performance: Sensex and Nifty
The 30-share Sensex rallied 355.97 points (0.44%) to close at 81,904.70, after touching an intraday high of 81,992.85. It opened at 81,758.95, marking the fifth consecutive day of gains for the benchmark.
Meanwhile, the 50-share NSE Nifty rose 108.50 points (0.43%) to settle at 25,114, continuing its eight-day winning streak. This consistent upward trajectory reflects a strong recovery in investor sentiment and positive technical momentum across multiple sectors.
Expert Outlook: What to Expect Next Week
Sugandha Sachdeva, Founder, SS WealthStreet pointed out, “The benchmark index Nifty ended the week higher by 1.51%, extending gains for the second straight week after forming a solid base around 24,400. Since then, the index has been on a steady upward trajectory, supported by improving domestic cues and expectations from global events.”
She highlighted key triggers for the week ahead:
US Federal Reserve policy meeting on September 17 – a 25 bps rate cut looks almost certain, though a surprise 50 bps cut or hawkish guidance could introduce volatility.
India-US trade optimism – speculation about President Trump’s visit to India in November 2025 could lift market sentiment.
Currency movements – a sustained drop in the US dollar index below 96.50 could reverse the negative FII flows seen in September. Encouragingly, FIIs were net buyers in Friday’s session.
Structural support from GST reforms – recent government moves to rationalize GST rates provide momentum to equities.
From a technical perspective, Nifty has immediate support at 24,700, while a breakout above 25,280 could trigger a significant rally. For Bank Nifty, key support lies at 54,000, with upside potential toward 55,500-56,100 in the near term.
Sudeep Shah, Vice-President & Head of Technical & Derivatives Research, SBI Securities observed, “Nifty has staged a steady rebound of nearly 700 points over the past two weeks, closing at its highest weekly level in eight weeks. The index is trading above both short-term and long-term moving averages, which are trending upward-a bullish sign.”
Key levels to watch:
Near-term resistance for Nifty: 25,150-25,200; sustained move above 25,200 could push the index toward 25,500-25,700.
Support zone: 24,950-24,900.
Sensex levels:
Crucial hurdle: 82,100-82,200; a move above 82,200 could lead to a rally toward 83,000-83,600.
Immediate support: 100-day EMA at 81,150-81,200.
Bank Nifty:
Resistance: 55,100-55,200, potential rally to 56,000 if broken.
Support: 54,300-54,400, offering a cushion against short-term weakness.
How Traders Should Navigate Volatility
Experts recommend that traders focus on quality stocks and practice strict risk management. Key strategies include:
Aligning trades with the broader market trend
Avoiding excessive trading in volatile conditions
Using multi-time frame analysis
Waiting for clear price confirmations before entering positions
Sectoral Outlook: Potential Outperformers – Shah
Nifty India Defence: Breakout above a downward sloping trendline and moving averages indicates bullish momentum, supported by RSI above 60.
Nifty CPSE & Nifty PSE: Both indices are showing trend reversal signs after downward sloping trendline breakouts.
Nifty IT: Formed a Double Bottom pattern; sustained move above 36,500 could trigger sharp upside.
Other sectors with positive momentum include Metal, Pharma, Healthcare, Automobile, and Consumer Durables, supported by strong technical indicators.
Stocks Showing Promising Signs
Defence & PSU: MAZDOCK, HAL, BEL, BEML, GRSE, TITAGARH – trading above key moving averages, breaking consolidation zones.
Pharma & Healthcare: Dr. Reddy’s, GLENMARK, GLAND – upward momentum supported by RSI and trend structure.
Financials: BAJFINANCE, BAJAJFINSV – consolidation breakout on daily charts backed by momentum.
Metals & Commodities: NATIONALUM, HINDALCO, HINDZINC, HINDCOPPER – bullish continuation patterns above short-term EMAs.
Shah suggest these stocks could offer trading opportunities if market sentiment remains supportive
With Nifty and Sensex ending the week on strong footing and multiple sectors showing bullish setups, the Indian stock market next week looks poised for further gains. Traders should monitor US Fed policy outcomes, India-US trade developments, and key technical levels to navigate potential volatility successfully.