Index Update: The Nifty 50 gained 152.70 points to 26,186.45, holding key support levels and maintaining a stable overall structure. The index remains comfortably above the 51-day SMA at 25,632.80, underscoring strong underlying support, while the RSI at 60.21 signals steady momentum. Immediate support is placed near 25,500, with resistance around 26,500. A sustained move above 26,350 could further strengthen near-term sentiment.

Macro Update: The RBI cut the repo rate by 25 bps to 5.25%, extending total 2025 easing to 125 bps amid a softer inflation outlook. Liquidity support was boosted through INR 1 trillion OMOs and USD 5 billion FX swaps. GDP growth for FY26 was upgraded to 7.3%, while inflation was revised down to 2.0%.

Top Market Movers: On Friday, Shriram Finance Limited (NSE: SHRIRAMFIN) led the gainers with a 3.23% increase, closing at INR 854.90 followed by State Bank of India (NSE: SBIN) up 2.47% at INR 971.50 and Bajaj Finserv Limited (NSE: BAJAJFINSV) which rose 2.31% to INR 2,096.50. On the downside Hindustan Unilever Limited (NSE: HINDUNILVR) saw the largest drop, falling 5.02% to INR 2,338.60 followed InterGlobe Aviation Limited (NSE: INDIGO) down 1.21% to INR 5,370.50 and Eterna Ltd (NSE: ETERNAL), which dropped 1.13% to INR 292.40.

Commodity Update: The U.S. dollar hovered near a five-week low as traders awaited next week’s Federal Reserve meeting, where a quarter-point rate cut is widely expected. Markets will watch for clues on the pace of future easing. Gold slipped 0.21% to USD 4,234.15, while silver rose 0.99% to USD 58.06 and copper gained 1.08% to USD 11,568.50. Brent crude inched up 0.09% to USD 63.32, supported by rate-cut expectations and rising geopolitical tensions.

Our Stance: Market sentiment remains constructive, supported by firm index positioning above key technical levels, an accommodative RBI stance, and stable global commodity cues. Financials continue to drive leadership, while select consumer names face pressure. A breakout above 26,350 may unlock further upside, though volatility could persist ahead of the Fed decision.

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