Key facts
- Indian stock markets, Sensex and Nifty, rallied sharply on Friday, gaining approximately 2% each.
- The surge was attributed to hopes of a US-Iran peace deal and falling crude oil prices.
- The rally increased the market capitalization of BSE-listed companies by approximately Rs 10 lakh crore.
- Analyst Sudeep Shah identified a bullish technical setup for Nifty, with potential targets at 23,800 and 24,000.
- Bank Nifty confirmed a breakout from a symmetrical triangle pattern, indicating potential further gains.
- Nifty IT index shows a weak technical structure, with support identified at 27,050–27,000.
Indian stock markets experienced a significant rally on Friday, with the Sensex and Nifty50 indices each gaining approximately 2%. This surge, which added nearly Rs 10 lakh crore to the total market capitalization of BSE-listed companies, was driven by renewed hopes for a US-Iran peace deal and a decline in crude oil prices. Global sentiment also improved, contributing to the positive momentum.
US President Donald Trump's statement on Thursday suggesting a potential peace deal with Iran, which could reopen the Strait of Hormuz for shipping, was a key catalyst. This development, coupled with reports of a potential easing of oil sanctions on Iran, led to a drop in crude oil prices to a three-month low. The Indian rupee also strengthened against the US dollar.
Global markets mirrored the positive sentiment, with US stocks advancing and Asian markets, including South Korea's Kospi and Japan's Nikkei 225, also recording gains. SpaceX's strong debut on the Nasdaq further boosted investor confidence.
From a technical perspective, analyst Sudeep Shah of SBI Securities noted that Friday's rally holds significance, with Nifty closing above its 20-day EMA for the first time since May 2026. Improving momentum indicators suggest further upside potential for the Nifty towards 23,800 and the psychological 24,000 mark, with a crucial support zone identified between 23,350 and 23,300. Bank Nifty also confirmed a breakout from a symmetrical triangle pattern, indicating potential gains towards 57,500 and 58,300. However, the Nifty IT index shows a weak technical structure, trading below key moving averages, with immediate resistance at 28,250–28,300 and support at 27,050–27,000. A bullish divergence in Nifty's price-to-PCR ratio and improved FII long-short ratios in index futures suggest a potential pullback rally.