Sensex and Nifty surge 3% as strong domestic fundamentals power market recovery

Domestic fundamentals drive market rebound

Indian equity markets registered a decisive recovery last week as solid corporate earnings and a strong domestic economic outlook propelled benchmark indices up by nearly 3 per cent.

The 30-share BSE Sensex surged 3.11 per cent over the week, finishing Friday's session at 74,729.27 after gaining 413.66 points. Meanwhile, the NSE Nifty 50 advanced 2.78 per cent to settle at 23,146.15, capping a dramatic rebound of nearly 860 points from its weekly low of 22,288.45. Early indicators suggest the positive momentum will continue, with GIFT Nifty futures trading around 23,174.5 on Monday morning, up nearly 80 points.

The sector-wide rally was anchored by technology stocks, which jumped over 3 per cent on sustained earnings momentum, along with gains across auto and metal equities. The domestic resilience offered a stark contrast to broader Asian markets, where South Korea's Kospi plunged 3.17 per cent and Japan's Nikkei 225 dropped 1.73 per cent amid concerns over global technology valuations.

Analysts highlight resilience and key resistance levels

Religare Broking senior vice president of research Ajit Mishra said markets witnessed a strong recovery supported by an improved domestic growth outlook and renewed buying interest in large-cap stocks. While early-week trading showed volatility, strong buying across the final sessions helped benchmark indices recover decisively.

Technical analysts expect the momentum to continue, provided the indices clear crucial technical hurdles ahead. Choice Equity Broking vice president of technical research Sachin Gupta noted that the Sensex outlook remains sideways to bullish, adding that sustaining above the 73,900–74,100 range could keep the upward bias intact towards the 75,000–75,300 resistance zone.

For the Nifty 50, Motilal Oswal Financial Services head of derivatives Chandan Taparia noted that the index has reclaimed its 20-day moving average and sustained above 23,000, with upside targets positioned around 23,400–23,500. Technical analysts at Choice Broking added that Nifty's rebound from its 200-week exponential moving average indicates renewed demand at lower valuations.

Mirae Asset Sharekhan retail research head Somil Mehta identified immediate Nifty support between 22,800 and 22,550, with resistance expected between 23,475 and 23,600.

Analyst stock picks for the week

Market strategists have highlighted several large-cap and mid-cap stocks showing technical strength following last week's market recovery.

In banking, Angel One technical analyst Hitesh Rathi noted that Bank Nifty is approaching a resistance confluence around 56,000–56,100, which coincides with its 50-day, 20-week, and 50-week exponential moving averages. However, broad institutional interest in India's financial sector continues to underpin overall market stability.