Nifty 50 Hits Record High of 26,340; Sensex Surges 573 Points

Indian equity benchmarks extended their gains for the third consecutive session on Friday, with the Nifty 50 and BSE Sensex closing at fresh lifetime highs. The market rally was broad-based, supported by strong performance in cyclical sectors and positive technical indicators, signaling strengthening momentum for the bulls.

Record-Breaking Session for Key Indices

The Nifty 50 index concluded the trading day 182 points, or 0.70%, higher at 26,329. During the session, it touched a new record intraday high of 26,340. Similarly, the BSE Sensex advanced significantly, moving up by 573 points, or 0.67%, to settle at 85,762. The positive sentiment was not limited to the headline indices. The Nifty Bank index also played a crucial role, touching a new all-time high of 60,203.75 before closing at 60,150, a gain of 440 points or 0.74%.

Broader Market Participation

The rally's strength was evident in the performance of the broader markets. Mid-cap and small-cap stocks participated enthusiastically in the upward trend, closing the day in the green. The BSE Midcap index finished 458 points, or 0.97%, higher at 47,539, while the BSE Smallcap index gained 405 points, or 0.79%, to end at 51,920. The overall market breadth was positive, with 2,247 stocks advancing on the BSE, compared to 895 that declined, and 104 remaining unchanged. Furthermore, 101 stocks hit a fresh 52-week high, underscoring the bullish sentiment.

Expert Technical Analysis

Market analysts pointed to strong technical signals supporting the ongoing rally. Nilesh Jain, Head of Technical and Derivatives Research at Centrum Broking, noted that the Nifty has broken out of a symmetrical triangle pattern on the daily chart. "The MACD has generated a fresh buy crossover on the daily timeframe, while the RSI has moved above the 60 mark, signaling strengthening momentum," he explained. Jain also highlighted that the index is trading above all key short- and long-term moving averages, which keeps the broader trend firmly positive. He suggested that the support base has now shifted higher to the 26,100 zone, opening up the potential for a move towards 26,500 levels in the near term.

Key Market Movers

Several stocks stood out during Friday's session, contributing significantly to the indices' performance.

Sectoral Performance and Market Drivers

Ajit Mishra, Senior Vice President of Research at Religare Broking, attributed the positive sentiment to sector-specific developments. "Stronger auto sales trends and an improving demand outlook across cyclical sectors supported the market," he said. Mishra added that select index heavyweights provided additional momentum, allowing the market to sustain its upward trajectory despite the absence of strong global triggers, as several overseas markets were closed for holidays. However, the FMCG sector faced headwinds, primarily due to continued weakness in tobacco-related stocks like ITC following recent tax-related news.

Market Outlook

With the benchmarks scaling new peaks, the outlook remains positive. Experts believe that as long as the Nifty 50 sustains above the crucial support level of 26,000-26,100, the path is clear for further gains. The next psychological levels to watch are in the 26,400 to 26,500 range. The broad-based nature of the rally, coupled with strengthening technical indicators, suggests that investor confidence is high. However, traders will continue to monitor global cues and domestic developments as the market navigates these record levels.

Conclusion

The Indian stock market concluded the week on a high note, with both the Nifty 50 and Sensex establishing new milestones. The rally was underpinned by strong participation from mid- and small-cap stocks, positive technical breakouts, and favorable developments in key sectors. While the FMCG space showed some weakness, the overall market sentiment remains bullish, with experts anticipating a continued upward journey towards the 26,500 mark for the Nifty 50 in the near future.