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What is the story about?
After two consecutive sessions of decline, the Nifty snapped its losing streak to close marginally higher by 28 points at 25,694.
The index opened 31 points higher and rallied sharply in the first 90 minutes, rising 177 points to hit an intraday high of 25,873.
However, after 10.45 am, the rally lost momentum as the Nifty erased all its gains and slipped more than 200 points from the day's peak. The index later recovered part of the losses to settle marginally in the green.
Throughout Friday's session, the Nifty made repeated attempts to move higher and sustain near the highs. These efforts, however, were capped by selling pressure emerging close to the 25,900 zone, preventing a meaningful comeback by bulls.
In the Nifty basket, tech majors Infosys, Tech Mahindra, and Wipro led gains, while Eternal, Jio Financial, and Cipla faced selling pressure to end as top losers.
The Nifty IT index jumped over 3%, fueled by strong Q3 earnings from Infosys that lifted investor sentiment.
Sectoral performance was mixed bag. While IT, Nifty Bank and PSU Banks showed strength, Pharma, Healthcare and Metal faced selling pressure ending the day as the top laggards.
The Nifty Midcap 100 gained 0.16% while Nifty Smallcap 100 slipped 0.28%.
Sentiment also found support after the Commerce Secretary said on January 15 that the first tranche of the India-United States trade deal is nearing finalisation.
On the geopolitical front, risk appetite improved marginally as tensions between the US and Iran eased, following reports that Washington had conveyed to Tehran that an attack was not imminent after diplomatic engagement.
Despite these supportive cues, market participants expect a phase of consolidation in the near term. Siddhartha Khemka of Motilal Oswal said markets are likely to trade sideways, with stock-specific moves driven by corporate earnings and trade-related developments, while any escalation in geopolitical tensions remains a key risk.
Nagaraj Shetti of HDFC Securities said a sustained move above 25,900 could pave the way for further upside next week. However, a break below the crucial support of 25,500 could open the door for additional downside.
Nilesh Jain of Centrum Broking said the 100-DMA, placed around 25,570, is expected to act as immediate support, while the 50-DMA near 26,960 remains a major resistance.
He added that the index is likely to remain in a consolidation phase, with early signs of distribution emerging at higher levels.
A decisive breakout above 26,000, however, could trigger short covering and signal the formation of a short-term bottom.
Vatsal Bhuva of LKP Securities said sentiment in the short term remains weak, with the potential for further downside. He placed support at 25,600, below which a deeper correction could unfold, while resistance is seen at 25,835.
Nandish Shah of HDFC Securities said that the Nifty continues to trade within a consolidation range of 25,473 to 25,900, and said a decisive breakout on either side would determine the next directional move.
Meanwhile, the Nifty Bank index outperformed the frontline indices during Friday's session.
Looking ahead, Sudeep Shah of SBI Securities said the previous swing high zone of 60,400-60,500 will act as immediate resistance for Bank Nifty.
A sustained move above 60,500 could extend the up move towards 61,000, while the 59,600-59,500 zone is expected to provide immediate support.
The index opened 31 points higher and rallied sharply in the first 90 minutes, rising 177 points to hit an intraday high of 25,873.
However, after 10.45 am, the rally lost momentum as the Nifty erased all its gains and slipped more than 200 points from the day's peak. The index later recovered part of the losses to settle marginally in the green.
Throughout Friday's session, the Nifty made repeated attempts to move higher and sustain near the highs. These efforts, however, were capped by selling pressure emerging close to the 25,900 zone, preventing a meaningful comeback by bulls.
In the Nifty basket, tech majors Infosys, Tech Mahindra, and Wipro led gains, while Eternal, Jio Financial, and Cipla faced selling pressure to end as top losers.
The Nifty IT index jumped over 3%, fueled by strong Q3 earnings from Infosys that lifted investor sentiment.
Sectoral performance was mixed bag. While IT, Nifty Bank and PSU Banks showed strength, Pharma, Healthcare and Metal faced selling pressure ending the day as the top laggards.
The Nifty Midcap 100 gained 0.16% while Nifty Smallcap 100 slipped 0.28%.
Sentiment also found support after the Commerce Secretary said on January 15 that the first tranche of the India-United States trade deal is nearing finalisation.
On the geopolitical front, risk appetite improved marginally as tensions between the US and Iran eased, following reports that Washington had conveyed to Tehran that an attack was not imminent after diplomatic engagement.
Despite these supportive cues, market participants expect a phase of consolidation in the near term. Siddhartha Khemka of Motilal Oswal said markets are likely to trade sideways, with stock-specific moves driven by corporate earnings and trade-related developments, while any escalation in geopolitical tensions remains a key risk.
Nagaraj Shetti of HDFC Securities said a sustained move above 25,900 could pave the way for further upside next week. However, a break below the crucial support of 25,500 could open the door for additional downside.
Nilesh Jain of Centrum Broking said the 100-DMA, placed around 25,570, is expected to act as immediate support, while the 50-DMA near 26,960 remains a major resistance.
He added that the index is likely to remain in a consolidation phase, with early signs of distribution emerging at higher levels.
A decisive breakout above 26,000, however, could trigger short covering and signal the formation of a short-term bottom.
Vatsal Bhuva of LKP Securities said sentiment in the short term remains weak, with the potential for further downside. He placed support at 25,600, below which a deeper correction could unfold, while resistance is seen at 25,835.
Nandish Shah of HDFC Securities said that the Nifty continues to trade within a consolidation range of 25,473 to 25,900, and said a decisive breakout on either side would determine the next directional move.
Meanwhile, the Nifty Bank index outperformed the frontline indices during Friday's session.
Looking ahead, Sudeep Shah of SBI Securities said the previous swing high zone of 60,400-60,500 will act as immediate resistance for Bank Nifty.
A sustained move above 60,500 could extend the up move towards 61,000, while the 59,600-59,500 zone is expected to provide immediate support.
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