Indian equities maintained a steady course this week with positive foreign inflows and constructive technical signals, suggesting optimism despite ongoing net outflows and a cautious trading range across main benchmarks.
Indian equities entered the week with a sharp gap higher, then spent the rest of it moving in a tight band, leaving the main benchmarks modestly firmer by the close. Market technicians said the tone remains constructive for the Nifty 50, Sensex and Nifty Bank, with support levels seen close enough to limit any pullback and the broader bias still tilted upwards.
Foreign portfolio investors are adding to that optimism. According to market data cited by BusinessLine, FPIs were net buyers of Indian equities for a third straight week and stepped up their purchases sharply, with equity inflows of about $1.35bn. That followed $2.12bn of inflows in July and suggests August has started on a more positive footing, even though overseas investors have been net sellers over a much longer stretch. Business Standard reported that in financial year 2025-26, FPIs had pulled ₹1.37 trillion out of Indian shares even as they put money into debt, while Moneycontrol said cumulative equity outflows had reached ₹2.25 lakh crore by May 2026.
On the charts, the Nifty 50 is hovering around a zone that could decide its next move. The index has support at 24,500 and 24,400, with resistance seen at 24,850. A decisive move through that ceiling could open the way to 25,200-25,400 in the short term and, over a longer horizon, strengthen the case for 26,500. If the index slips below 24,400, traders would look for a retreat towards 24,200 or 24,000, although the wider trend would not turn decisively negative unless 23,850 gives way.
The Sensex is in a similar holding pattern. Technical analysts cited by BusinessLine said the index has support at 77,500 and resistance near 79,500, with a break above 80,000 potentially carrying it to 81,000-82,000. The broader range of 71,000-86,000 still appears intact. For the Nifty Bank index, support is seen in the 57,500-57,350 area, with 58,500 the immediate hurdle. A sustained move above that level could extend the rally towards 59,000 and 60,000. The mood in the wider market is less clear-cut but still constructive: the Nifty Midcap 150 is pressing against resistance around 23,300-23,500, while the Nifty Smallcap 250 has only just moved above 18,300, making follow-through buying crucial if the recent recovery is to continue.
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