Stock Market Technical Analysis | 29th June to 3 July 2026 Weekly Wrap

Indian equities extended their upward momentum with Nifty closing above 24,270 despite persistent FII selling. Falling India VIX, strong DII participation, and bullish derivatives positioning indicate improving market sentiment, though sectoral divergence remains visible.

Expert recommendation by:

• Mr. Ketan Kaushik - Derivative Analyst

Equity

• Benchmark Index traded with positive bias in the previous week before closing with 0.89% gain at 24271 level. Banking Index underperformed the benchmark index as it closed with 0.41% cut at 57939 level.
• Among the Nifty constituents, ETERNAL and BAJAJFINSV outperformed the benchmark index as they closed with 10.39% and 7.42% gains while LT and EICHERMOT underperformed as they closed with 4.50% and 3.40% cut respectively. Among the Bank Nifty constituents INDUSINDBK outperformed the benchmark index as it closed with 6.03% gain while BANKBARODA underperformed the benchmark index as it closed with 9.65% cut.
• Among sectors, NIFTYREALTY index outperformed the benchmark index during the previous week as it closed with 7.81% gain while NIFTYPSUBANK index underperformed as it closed with 2.65% cut. MIDCAP index lagged the benchmark index as it closed with 0.64% gain while SMALLCAP index outperformed the benchmark index as it closed with 2.05% gain.
• Volatility index (India VIX) closed with 9.58% cut at 11.79 level.
• FII were net sellers as they sold stocks worth Rs 4,004 Cr while DII were net buyers as they bought stocks worth Rs 12,634 Cr during the previous week in the cash segment.
• Globally, equity markets traded with a positive bias as both US market (DJIA) and European market (STOXX 600) closed with 1.97% and 2.66% gains respectively.

Derivatives

• Derivatives data for Nifty suggest max OI addition at 25000 call and 24000 put side with max OI at 24300 for both call and put side (07th Jul expiry). Nifty cumulative PCR closed at 1.07 for Jul 03.
• Derivatives data for Bank-nifty suggest max OI addition at 60000 call and 58000 put side with max OI at 59000 for both call and put side (28th Jul expiry). Bank-nifty cumulative PCR closed at 0.89 for Jul 03.

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Performance:

Indices

Source: NSE

Sector Gainers/Losers

Source: NSE

FII / DII ACTIVITY (WEEKLY)

Source: NSE

SUPPORT/RESISTANCE LEVEL FOR UPCOMING WEEK

Source: NSE

DAILY EXPONENTIAL MOVING AVERAGE

Source: NSE

TECHNICAL OUTLOOK

NIFTY (WEEKLY)

• Benchmark index traded with positive bias in the previous week before closing with bullish candlestick formation on the weekly chart
• Benchmark index is likely to trade volatile in the coming week
• Benchmark Index has support at 23,800–23,500 level and resistance at 24,800–25,000 level

BANKNIFTY (WEEKLY)

• Banking index underperformed the benchmark and closed with indecisive candlestick formation on the weekly chart
• Banking index is likely to perform in line the Benchmark index in the coming week
• Banking index has support at 56,500-56,000 and resistance at 59,200-59,700 level

FINNIFTY (WEEKLY)

• FINNIFTY index outperformed the banking index and closed with indecisive candlestick formation on the weekly chart
• FINNIFTY is likely to trade in line with the banking index in the coming week
• FINNIFTY has support at 26,300-26,000 level and resistance at 27,500-27,800 level.

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Market FAQs – Weekly Summary

1. How did Nifty and Bank Nifty perform during the week?

Nifty gained 0.89% and closed at 24,271, while Bank Nifty underperformed and ended 0.41% lower at 57,939.

2. What does the decline in India VIX indicate?

India VIX fell 9.58% to 11.79, suggesting reduced volatility expectations and relatively stable market sentiment.

3. Which sectors outperformed during the week?

Nifty Realty emerged as the top-performing sector with a gain of 7.81%, followed by strength in selected small-cap stocks.

4. Which sector underperformed the benchmark index?

Nifty PSU Bank was among the weakest sectors, declining 2.65% during the week.

5. What was the trend in FII and DII activity?

FIIs remained net sellers with outflows of ₹4,004 crore, while DIIs provided support through net purchases of ₹12,634 crore.

6. Which Nifty stocks delivered the strongest weekly performance?

ETERNAL and BAJAJ FINSERV were among the top gainers, rising 10.39% and 7.42%, respectively.

7. What does the Nifty PCR of 1.07 signify?

A PCR above 1 generally reflects relatively stronger put positioning and may indicate constructive market sentiment.

8. What are the key derivatives observations for Nifty?

Maximum open interest addition was seen at the 25,000 Call and 24,000 Put strikes, highlighting important option positioning levels.

9. How did global markets influence sentiment?

Positive performances in the US (DJIA +1.97%) and European markets (STOXX 600 +2.66%) supported broader risk appetite.

10. What should investors focus on in the coming week?

Investors may track earnings updates, FII-DII flows, derivatives positioning, India VIX trends, and sector rotation for market direction clues.

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