Stock markets began the new week on a cautiously optimistic note as benchmark indices displayed mild strength during early trade. With global cues improving and investor sentiment stabilising, the overall tone of the market reflected a balanced mix of optimism and prudence. Early movements indicated that traders were monitoring global developments closely while also factoring in evolving expectations for earnings growth in the coming fiscal years.
The broader market mood was shaped by improved visibility of FY27 earnings and steady buying interest in select largecap and IT counters. Despite the absence of any major domestic triggers, the indices managed to open higher, validating the improving risk appetite among market participants. However, the trend remained mixed across sectors as investors selectively positioned themselves for short-term opportunities.
The session also saw increased focus on how global macro indicators, especially from the United States, may influence overall momentum. With several major announcements lined up during the week, participants adopted a calculated approach while assessing potential market direction.
Market Opens Higher on November 24
Nifty and Sensex opened with mild gains, supported largely by positive global signals and renewed confidence in the medium-term earnings outlook. Benchmark indices attempted to sustain the upward movement seen in previous sessions, even as certain pockets of the market displayed weakness. Investors remained attentive to shifts in international markets, particularly ahead of critical economic data releases.
During the opening minutes, the Sensex registered an increase of 167.51 points, reflecting a 0.20 percent rise, while the Nifty advanced by 51.35 points. Market breadth was nearly even, with over 1,300 shares advancing and a similar number declining. The balanced participation highlighted both opportunities and uncertainties in the current environment.
IT Leads, While Other Sectors Show Mixed Trends
The IT sector emerged as a significant outperformer, gaining over one percent and offering stability to the overall market sentiment. The strong performance was in line with global demand cues and improving outlook for technology services. Pharma and banking stocks also contributed selectively to the upward bias, indicating early signs of rotational buying.
However, sectors such as realty, auto, and FMCG experienced mild pressure. These segments faced profit-booking and cautious trading activity as valuations continued to influence investor decisions. The divergence in sectoral performance reflected a broader consolidation phase in the market.
Shift in Market Fundamentals and Earnings Outlook
Previous attempts by benchmark indices to surpass their 2024 highs were restricted due to foreign selling and uncertainty regarding a potential trade deal. The lack of clarity on earnings growth for FY27 added to the hesitation among investors. Now, with earnings projections becoming more stable and global developments turning favourable, the market appears better positioned for a strong breakout.
Analysts highlight that a major catalyst for future market strength will be consistent earnings growth. Expectations of more than 15 percent growth in FY27 provide a meaningful cushion. In addition, the possibility of renewed foreign inflows could further strengthen the upward trend. Given this backdrop, experts suggest a focus on largecaps and selective midcaps, while noting that smallcaps remain relatively overvalued.
Global Economic Data to Influence Market Trajectory
As the week progresses, markets are expected to respond closely to economic indicators from the United States. Producer inflation data, retail sales figures, industrial output, and the much-anticipated GDP reading are among the key numbers set for release. These data points will shape expectations regarding interest rate adjustments and broader monetary policy stance.
Investors are particularly keen on signs of economic moderation, which may reinforce the possibility of policy easing by the Federal Reserve. A softer economic outlook could support equity markets in emerging economies and potentially drive more foreign investment into markets with stronger growth prospects.
Nifty Technical View: Strong Trend Continues
The Nifty maintained strong positive momentum through the week, touching a new 52-week high before witnessing moderate profit-booking. Its ability to stay above the 26,000 mark on daily charts underscores firm demand and sustained buying interest during dips. Technical indicators suggest that the broader uptrend remains intact.
With the index trading comfortably above its key moving averages — including the 20, 50, and 200 EMAs — the sentiment remains in favour of buyers. Resistance levels are expected near 26,100 and 26,250, while supports are positioned at 26,000 and 25,900. Traders may prefer a buy-on-dips strategy to navigate near-term volatility while maintaining disciplined stop-loss levels.
Conclusion: Market Poised for Gradual Upside
The combination of improving global cues, stable earnings expectations, and strong technical positioning suggests that the market is gradually preparing for an upward breakout. While some sectors continue to consolidate, the underlying strength in IT, banking, and select largecaps provides a supportive foundation.
As investors continue to monitor global economic data and potential policy shifts, the market’s direction will largely depend on external signals and earnings-linked confidence. With balanced participation and improving fundamentals, the indices appear to be on track for a steady climb in the sessions ahead.
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About the Author:
Harshit Raj
