On Friday, domestic stock markets experienced a notable rise, achieving their longest weekly winning streak of the year, primarily driven by the significant contributions from Reliance Industries. The optimism surrounding a potential trade agreement between India and the U.S., along with steady foreign investments, bolstered market sentiment. The Nifty 50 ended the day up by 0.05%, closing at 24,346.7, while the BSE Sensex climbed 0.32% to reach 80,501.99.

Weekly Performance Highlights

Both major indices posted impressive gains earlier in the session, with the Nifty and Sensex rising by approximately 1% before tapering off. Over the week, the Nifty increased by 1.3%, and the Sensex saw a boost of 1.6%, marking their third consecutive week of gains. This upward momentum signifies a robust market rally, yet analysts speculate there may be a period of consolidation ahead.

• Nifty’s Range: The Nifty has been trading within 24,000 to 24,600.
• Key Support Level: Maintaining the 23,800 level is critical to preserving its bullish outlook.
• Potential Risks: A drop below this mark could trigger profit-taking, with further support anticipated near 23,400.

Future Market Directions

Should the Nifty achieve a decisive close above 24,400, it could reignite bullish momentum, potentially driving the index toward the 24,800 threshold.

Banking Sector Insights

The Bank Nifty index is currently showing signs of consolidation following its recent surge, maintaining relative strength above crucial moving averages despite some profit booking. While a period of consolidation appears likely, the overall sentiment remains positive.

• Support Levels: Continued interest is expected around the 52,800-53,700 marks.
• Upside Potential: A rebound here could open doors for a rise towards 55,500–57,000.

Investment Strategy Moving Forward

Given the current landscape, adopting a "buy on dips" strategy seems prudent, with a focus on hedged positions within the index. Additionally, investors should remain vigilant for selective stock-picking opportunities that align with sector performance. Prioritizing stocks that present favorable risk-reward ratios could lead to significant gains in the coming weeks.

In conclusion, as market dynamics evolve, maintaining a strategic and informed approach will be key for both seasoned investors and newcomers alike.