Nifty Holds Positive Bias as Rupee Stability Supports Market Sentiment

Index Update: The Nifty 50 Index closed near 24,206.90, remaining above its 50-day SMA around 23,829.65, indicating that the medium-term technical structure continued to remain positive. Recent price action reflected a recovery following earlier volatility, with the index extending its gains while holding comfortably above its medium-term average. The 14-day RSI stood at 55.80, remaining above the neutral 50 mark and suggesting moderately positive momentum. Immediate support is placed near 24,085.00 and 23,964.00, while resistance is seen around 24,328.00 and 24,449.00. A decisive move beyond these levels could influence the index's next directional trend.

Macro Update: The Indian rupee remained supported by the RBI's initiatives to attract dollar inflows, reducing expectations of prolonged depreciation. Corporate FX hedging reached a record USD 120 billion in June, led by higher exporter and importer hedge positions. Additional inflows of USD 40–80 billion are expected, while easing depreciation concerns have limited bearish sentiment despite geopolitical volatility.

Top Market Movers: On Friday, Jio Financial Services Limited (NSE:JIOFIN) led the gainers with a 3.68% increase, closing at INR 241.96 followed by HDFC Life Insurance Company Limited (NSE:HDFCLIFE) up 2.87% at INR 567.70 and Adani Enterprises Limited (NSE:ADANIENT) which rose 2.39% to INR 3,157.30. On the downside followed Dr. Reddy's Laboratories Limited (NSE:DRREDDY) saw the largest drop, falling 1.99% to INR 1,244.30 followed Eternal Limited (NSE:ETERNAL) down 0.96% to INR 289.65 and Bharti Airtel Limited (NSE:BHARTIARTL) which dropped 0.55% to INR 1,920.40.

Commodity Update: The U.S. dollar weakened on Friday as easing inflation concerns, supported by lower oil prices, and the latest Federal Reserve meeting minutes highlighted a balanced debate among policymakers regarding the future path of interest rates. Gold declined 0.10% to USD 4,136.70 per ounce, while silver advanced 0.12% to USD 60.81 per ounce. Copper gained 0.09% to USD 13,531.00 per tonne. Meanwhile, Brent crude oil slipped 0.30% to USD 76.07 per barrel as crude exports through the Strait of Hormuz remained largely uninterrupted despite ongoing U.S.-Iran tensions.

Our Stance: The Nifty 50 continues to exhibit a constructive technical outlook, supported by positive momentum and resilience above its 50-day SMA. Stable rupee dynamics, easing depreciation concerns, and improving risk sentiment remain supportive. However, investors should monitor resistance levels, global commodity trends, and geopolitical developments for confirmation of sustained upside momentum.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.

Copyright 2026 Krish Capital Pty. Ltd. All rights reserved. No part of this website, or its content, may be reproduced in any form without our prior consent.