Broader markets outperform; Ather Energy, Piramal Pharma, Laurus Labs surge over 20% each

On the other hand, Suzlon Energy, AU Small Finance Bank, Supreme Industries, Mahindra & Mahindra Financial Services, Bharat Dynamics and Yes Bank were among the key laggards. The Nifty Smallcap 100 index gained 4 percent during the week, with Ather Energy, Piramal Pharma, Sona BLW Precision Forgings, Urban Company, Navin Fluorine International, PG Electroplast, Poonawalla Fincorp, Sai Life Sciences and Ola Electric Mobility rising 10–27 percent.

On the other hand, Aegis Logistics, Five-Star Business Finance, Redington, IFCI, Inox Wind, Afcons Infrastructure and Swan Corp were among the key laggards. Among sectors, the Nifty Pharma and Healthcare indices outperformed, rising 7 percent each during the week. They were followed by the Nifty Media and Capital Markets indices, which gained 4 percent each, while the Nifty Realty index advanced 3.7 percent.

On the other hand, the Nifty Oil & Gas index was the sole laggard, declining 0.7 percent. "Indian equity markets staged a sharp recovery during the week, rebounding strongly from the previous week's decline amid improved investor sentiment. The Nifty 50 gained 2.00% to close higher, while the BSE Sensex advanced 1.83%. Broader markets outperformed the benchmark indices, with the Nifty Smallcap 100 and Nifty Midcap 100 rising 4.08% and 2.69%, respectively, indicating renewed buying interest and a gradual improvement in risk appetite among market participants," said Ravi Singh, Chief Research Officer from Master Capital Services.

"The broad based rally reflected improving investor sentiment and renewed buying interest across sectors, indicating a meaningful recovery in overall market participation. The market recovery was supported by significant short covering and relatively lower FII selling, which helped sustain upward momentum," he added. "Falling US 10 years Treasury yields further improved global investor sentiment by easing concerns over borrowing costs.

Better than expected Q2 corporate earnings and positive management commentary, particularly from Trent, boosted market confidence. Additionally, value buying across Banking, Financial Services, IT, Realty and FMCG stocks contributed to the broad based recovery." "On the flows front, FIIs turned net buyers during the week, while DIIs also remained net buyers, recording inflows of 3,109.79 crore. The simultaneous buying by both institutional categories provided additional support to the broader market recovery," said Ravi Singh.

Foreign institutional investors (FIIs) snapped their nine-week selling streak, turning net buyers with equity purchases worth Rs 6,304.67 crore during the week. Meanwhile, domestic institutional investors (DIIs) continued to support the market, buying equities worth Rs 3,109.79 crore. The market capitalisation of BSE-listed companies surged by more than Rs 22 lakh crore during the week. Where is market headed?

Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities After showing sharp upside breakout on Thursday, Nifty continued with upside momentum on Friday and closed the day higher by 115 points. A reasonable positive candle was formed on the daily chart which signals follow-through buying in the market after a decisive breakout. Nifty on the weekly chart formed a long bull candle that was a part of long alternative candles of bull and bear of three weeks at the crucial medium term trend line support.

Nifty is now nearing an important overhead resistance around 23200 levels (key resistance as per change in polarity). Hence, there is a possibility of consolidation or minor dip from the highs in early next week before surging higher. However, a decisive breakout of 23200 could pull Nifty towards 23500-23600 levels in a quick period of time. Any correction from highs could find support around 22800.

Amol Athawale, VP Technical Research, Kotak Neo The short-term texture of the market is positive, but buying on dips and selling on rallies would be the ideal strategy. On the downside, for the Nifty, 22800 and the 20-day SMA (Simple Moving Average), or 22700, and for the Sensex, 74000 and 73500, would act as key support zones. As long as the market holds these levels, the uptrend will remain intact.

On the higher side, 23175/74800 would be the immediate resistance zone for the bulls. A successful breakout above 23175/74800 could push the market up to 23350/75200. Further upside may also continue, which could lift the index to 23500/75500. On the flip side, below the 20-day SMA, or 22700 for the Nifty and 73500 for the Sensex, the uptrend would become vulnerable. Below these levels, traders may prefer to exit their long trading positions.