Stock Markets Surge: Nifty Rises, Global Optimism After Fed Rate Cut

The Indian stock market saw gains on Friday with Nifty 50 rising by 0.57% and Sensex by 0.53%. Despite a weekly fall, sectors like Nifty Metal led gains. Experts note promising patterns on charts and expect positive trends to continue, supported by global developments like the US Fed rate cut.

The Indian stock market extended its gains into the second consecutive session on Friday. The Nifty 50 climbed 0.57% to close at 26,046.95, while the BSE Sensex advanced 0.53% reaching 85,267.66. Meanwhile, the BSE Midcap and Smallcap indices witnessed increases of 1.14% and 0.65%, respectively. Despite these gains, the indices recorded a 0.5% decline over the week due to profit-booking around record highs.

Market sectors showed mixed performances, with Nifty Metal emerging as the top performer, surging ahead by 2.63%. Additional gains were registered in Nifty Realty, Consumer Durables, and Oil and Gas sectors, while Nifty Bank saw a moderate rise of 0.30%. Amol Athawale, VP of Technical Research at Kotak Securities, noted that after a brief correction, the market found support near 25,700/84,100 and is poised for further upward movement, having formed a positive reversal pattern near its 50-day SMA.

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, emphasized the significance of maintaining levels above 25,850/84,500 to sustain positive market sentiment. Analysts are observing robust buying interest in the broader market, especially midcaps, which suggests a favorable short-term outlook as long as key moving averages provide support. Bank Nifty encountered volatility and has been in consolidation between 59,440-58,800 for three sessions, signaling the need for strong conviction before a definitive breakout. On the global stage, the US Fed's rate cut has enhanced risk appetite, fueling optimism and bolstering domestic equities. The Japanese Nikkei also saw an upward swing, with the Nikkei 225 Index closing 1.4% higher at 50,836.55.

(With inputs from agencies.)