Nifty has broken out of eight straight weeks of declines, marking its first green weekly candle and trading near the 22,400 support mark.
The rally comes after a Friday recovery that lifted the index into a positive zone, a rare turnaround after a prolonged downtrend.
Banks are the sector to watch today, as the RBI’s recent stance on Cash Reserve Ratio (CRR) and currency protection could tilt the Nifty Bank component, which is projected to seek support at 54,500 if it falls.
Oil prices add a bullish backdrop, with Brent crude trading above $105 a barrel, providing tailwind for energy stocks and contributing to the broader market lift.
IT names such as HCLTech, Wipro, and Tech Mahindra are slated for earnings releases this week; their performance will likely be a barometer for the sector’s momentum.
The 22,600‑22,700 zone remains a key target for further upside, while a break below 22,400 could trigger a re‑test of recent lows, according to on‑ground analysts.
In the near term, traders will monitor RBI’s forthcoming CRR decision and the IT earnings cycle to gauge whether the rally can sustain or if a pullback looms.