After a volatile spell, the Nifty ended last week on a strong note, gaining 1.6 per cent and logging its best monthly advance in three months. The relief rally followed the long-awaited US trade deal, which helped offset lingering worries around the securities transaction tax (STT) hike and continued selling pressure in information technology (IT) stocks. Technical analysts say the recent price action has tilted the near-term outlook back in favour of the bulls with the Nifty finding stability above the crucial 25,600-25,700 zone after successfully defending the 25,500 mark. The index closed on 25,694 on Friday. “The current consolidation carries an upward bias as long as the 25,500-25,600 support zone holds,” said Ponmudi R, CEO – Enrich Money. “A decisive breakout above 26,000 is expected to generate strong bullish traction in the index,” added Osho Krishan, Chief Manager – Technical & Derivatives Research, Angel One.
The sharp spike and sustained volatility in gold and silver prices have provided a significant boost to Multi Commodity Exchange (MCX). The country’s leading commodity bourse saw a surge in trading activity in January, with average daily turnover jumping to ₹5.54 trillion — nearly 15 times the 2025 average of ₹35,800 crore. Gold and silver derivatives also accounted for a much larger share of overall volumes. The contribution of gold contracts rose to 38 per cent in January, while silver’s share climbed to 18 per cent, up sharply from 16 per cent and 4 per cent, respectively, a year ago. Analysts say MCX offers a leveraged play on heightened commodity price action, adding that a sustained rise in trading volumes could drive a meaningful re-rating of the stock.
Heightened market volatility has queered the pitch for the IPO market, with several companies staying on the sidelines despite having regulatory approvals in place. This week, however, could prove to be a key test for the primary market as Aye Finance and Fractal Analytics move ahead with their public issues, even as both have pared the size of their offerings amid choppy conditions. The grey market premium for the two issues is currently in low single digits, reflecting cautious investor sentiment.
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