Weekly Trend Report
- 18th July, 2026
Week Gone By
Indian equity markets remained range-bound for most of the week as elevated crude oil prices, geopolitical tensions in the Middle East and profit booking at higher levels kept investor sentiment cautious. However, the Q1FY27 earnings season provided stock-specific opportunities and helped the benchmarks remain resilient despite global headwinds. Sectoral performance was mixed, with IT emerging as the top performer (+3.7%), followed by Consumer Durables (+2.2%), supported by strong earnings optimism, while Realty (-2.1%), Metals (-1.7%) and Capital Goods (-1.2%) witnessed the sharpest declines. Sentiment improved sharply in the final session after Tech Mahindra’s better-than-expected results reinforced confidence in the IT sector and optimism ahead of earnings from large private banks and Reliance Industries lifted broader markets. Overall, the week was characterised by earnings-driven sector rotation, with resilient corporate earnings helping offset concerns around elevated crude prices and geopolitical uncertainties.
Week Ahead
Markets are likely to remain driven by the ongoing Q1FY27 earnings season in the week ahead, with investor reaction to Reliance Industries’ strong quarterly performance setting the initial tone, followed by results from HDFC Bank, ICICI Bank, Axis Bank, Kotak Mahindra Bank, Infosys, Bajaj Auto and Nestlé India. Management commentary from private banks on credit growth, margins and asset quality, along with Infosys’ outlook on global technology spending and demand trends, will be closely tracked. On the global front, investors will monitor the ECB’s interest rate decision and flash PMI data from the US, Eurozone and Japan for cues on growth and monetary policy. Movements in crude oil prices and developments in the Middle East will also remain key monitorables given their implications for inflation, corporate margins and foreign capital flows. Overall, markets are expected to remain earnings-driven, with stock-specific action dominating amid a mixed global backdrop.
Technical Overview
- Nifty 50 closed the week at 24,334.30, gaining 127.40 points +0.53% on the weekly timeframe. The index extended its recovery for the 3rd consecutive week and remained above the 24,100 breakout zone, reflecting sustained buying interest despite overhead resistance.
- On the weekly chart, Nifty formed another bullish candle with a higher high and higher close, confirming the continuation of the ongoing recovery. The market respected the higher-low formation and continued its gradual upward journey after the sharp March-April correction.
- The most significant development this week was the successful breakout above the 24,200–24,250 resistance area. Buyers maintained control throughout the week, allowing the index to register a fresh swing high. This breakout confirms that market participants are gradually absorbing supply at higher levels.
- After the breakout, Nifty managed to sustain above the previous resistance without witnessing aggressive profit booking. This price behaviour indicates a healthy polarity shift, with earlier resistance now acting as immediate support, strengthening the short-term bullish structure.
- The index has now entered the important institutional supply zone between 24,330 and 24,450. This region coincides with previous swing resistance, the falling 50-week EMA and a major supply cluster. Therefore, the coming week will be crucial to determine whether buyers can extend the recovery into a medium-term trend reversal.
- Weekly MACD continues to remain in positive territory with the bullish crossover intact, while the histogram is gradually expanding. This indicates improving medium-term momentum and suggests that buying strength continues to build.
- Weekly RSI has improved further and is steadily moving towards the bullish zone above 55, supporting the ongoing recovery and indicating strengthening price momentum.
- Conclusion:The latest weekly price action reflects a steady improvement in Nifty’s technical structure. The successful breakout above 24,200, followed by sustained trading above the breakout zone and the continuation of higher highs and higher lows, confirms that buyers remain firmly in control. However, the index has now entered a major resistance zone between 24,330 and 24,450, where institutional supply is likely to emerge. A decisive weekly close above 24,450 would confirm a medium-term breakout and open the door for an advance towards 24,800–25,000. Until then, the broader bias remains positive, with any pullback towards 24,150–24,200 likely to attract fresh buying interest, while 24,000 continues to act as the key support for the ongoing recovery.
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