Indian Markets Rise Before Weekly Expiry: Metals and Auto Stocks Shine, PSU Banks Weigh Down

The Indian stock market began the week's expiration period with an upward trend, as traders look forward to updates regarding the U.S.-India trade agreement. The Nifty index rose past the 25,500 mark during initial trading sessions.

At 10:00 a.m. Indian Standard Time, the Nifty 50 gained 84 points, reaching 25,540, whereas the Sensex increased by 299 points to 83,708.

Wider markets performed somewhat better, as the Nifty Midcap and Smallcap indexes increased by 0.1%.

Retail investor sentiment towards Nifty stayed 'positive'.

In terms of sectors, metals remained prominent for the second consecutive session, alongside automobiles experiencing significant purchasing activity. Conversely, public sector banks continued to face challenges under ongoing pressure.

Nykaa Shares of FSN E-Commerce Ventures declined by 4% after a bulk transaction took place.

Avenue Supermarts shares fell by 4% after their first quarter (Q1FY26) performance report. Additionally, Goldman Sachs maintains a 'Sell' recommendation, setting a price target of ₹3,400, which suggests a potential drop of 21%.

Tata Power dropped more than 2% following an arbitration panel ruling of $498 million in damages for the Kleros case.

And Coromandel International rose 4 percent after the Competition Commission of India (CCI) authorized its purchase of shares in NACL.

From a technical perspective, analysts registered with SEBI shared the trading strategy.

Kush Ghodasara noted that the Nifty index had enjoyed a strong short-term bull run, but recent price action suggests that momentum has exhausted. The momentum indicators are showing a shift towards a bearish bias.

He mentioned that evidence of this shift can be observed by looking for a closing price under 25,250, which served as the prior support zone. For now, liquidate temporary long trades on the index and consider entering fresh positions solely if the index moves beyond the 25,250–25,700 band in line with the breakthrough direction.

Prabhat Mittal set immediate support for the Nifty at 25,380 and resistance at 25,620, meanwhile setting Bank Nifty support at 56,700 and resistance at 57,600.

Analyst Varunkumar Patel emphasized that Foreign Institutional Investors (FIIs) sold shares valued at ₹1,500 crores in the cash market, while substantially raising their net short bets in index futures and options (F&O).

He mentioned that the weekly Nifty expiration on Thursday could cause some fluctuations, yet the broader market is anticipated to stay within a narrow band without indications of fear or decline. Patel recommends concentrating on choosing resilient stocks for trading and consistently applying a stop-loss order to control risks.

Asian markets showed varied performance worldwide on Thursday, as crude oil prices increased during the night due to Iran halting collaboration with the UN nuclear agency and the declaration of a trade agreement between the US and Vietnam.

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