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The Indian stock market showed modest gains in mid-day trading on Friday, with the Nifty 50 index up 0.36% at 25,241.80 and the Sensex rising 0.32 per cent to 82,401.20 as of 12:45 PM. The market’s upward momentum comes as Foreign Institutional Investors’ (FIIs) net long positions reached 70 per cent, meeting analyst expectations.
Shilpa Rout, AVP - Derivatives Research at PL Capital - Prabhudas Lilladher, commented on the market situation, saying, “As expected, our target of 68 per cent has been reached. If these levels are sustained, net longs could rise to 78% next.”
The Nifty’s option chain indicates 25,200 as the immediate resistance level. “... if it breaches and sustains this level, 26,000 will be the next target,” Rout added. For the Bank Nifty, the option chain suggests strong support at 51,000 and resistance at 52,000.
Market breadth remained positive, with 2,247 stocks advancing and 1,572 declining on the BSE. Notably, 241 stocks hit their 52-week highs, while only 17 touched their 52-week lows.
Among the top gainers on the NSE, Power Grid Corporation led with a 1.98 per cent increase, followed by Cipla (1.95 per cent), Bharti Airtel (1.89 per cent), Mahindra & Mahindra (1.83 per cent), and Divi’s Laboratories (1.64 per cent). On the flip side, Tata Motors saw the steepest decline of 1.37 per cent, with Reliance Industries (-1.05 per cent), ITC (-0.75 per cent), LTIMindtree (-0.49 per cent), and Adani Ports (-0.41 per cent) rounding out the top losers.
Sector-wise, NBFCs, Technology, Chemicals/Fertilizers, Energy, Banking (stock-specific), and Pharma showed strong roll activity, indicating potential bullish sentiment. However, the Automobile sector displayed signs of weakness.
Rout provided a cautiously optimistic outlook, stating, “NIFTY is a buy as long as the 24,800 zone is held, with positional targets of 25,700/ 26,000. Otherwise, the 24,200 zone will be tested if it falls below this level.”
The current Nifty roll rate stands at 69%, which is below the three-month average of 73%. This lower roll rate might suggest some uncertainty among traders about the market’s short-term direction.
As the market heads into the afternoon session, investors and traders will be closely watching the 25,200 level on the Nifty, which could determine the index’s next significant move.
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