Indian stock markets wrap up week on strong note as tariff fears ease

As a result, the Nifty index opened with a strong gap-up and tested resistance near the 20-day exponential moving average (DEMA) around 22,900. It then moved in a narrow range before settling at 22,828.55.

Sector-wise, metals, energy, and pharma led the gains, while broader indices also saw a solid rebound, rising between 1.82 per cent and 2.86 per cent.

"The recovery, supported by a continued decline in the volatility index, is a positive sign, though such sharp moves remain challenging to trade. On the index front, a decisive close above 22,900 could pave the way for a retest of the key moving average zone near 23,400," said Ajit Mishra-SVP, Research, Religare Broking Ltd.

The Sensex jumped 1,310.11 points, or 1.77 per cent, to close at 75,157.26 on Friday. During the day, the index touched an intra-day high of 75,467.33, while it slipped up to 74,762.84.

The Indian rupee found renewed strength, snapping its three-day losing streak against the US Dollar. Bolstered by a weaker Dollar, easing crude oil prices, and the buoyant equity market, the rupee closed significantly stronger by 65 paise at 86.04 against the greenback.

"The breadth of the market was strongly positive, with advancing shares significantly outnumbering declining ones. The advance-decline ratio on the BSE stood at a strong 3.68, marking its highest level since 5 March, 2025," said Nandish Shah, Senior Derivative and Technical Research Analyst, HDFC Securities.

The positive development in global trade policy shows a surge in small and midcap indices by 2 per cent, reflecting optimism that global supply chains may stabilise and input cost pressures could ease.

"However, such shifting policies make volatility inevitable. As business leaders and investors, one must remain cautious towards sectors heavily dependent on exports for revenue. That said, I remain optimistic about India's growth journey, as domestically, this could translate into better cost structures and renewed capex confidence," said Abhishek Jaiswal, Fund Manager at Finavenue.

Looking forward, the 22600-22700 range is expected to provide a near-term support for the Nifty, while the 23000-23100 band is likely to act as the immediate resistance zone on the upside.

The Bank Nifty index opened with a gap-up, maintained strong positive momentum throughout the session, and settled on a bullish note at 51,002. Technically, the Bank Nifty index decisively crossed the key resistance zone of 50,750-50,800 and formed a big bullish candle on both daily and weekly charts, reflecting underlying strength.

"The breakout level of 50,750 will now act as immediate support, and as long as the index sustains above this level, it has the potential to rally towards 51,500-52,000. Hence, traders are advised to adopt a 'buy on dips' strategy," said Hrishikesh Yedve, AVP Technical and Derivatives Research at Asit C. Mehta Investment Interrmediates Ltd. (A Pantomath Group Company).