Indian Equities Post Seven-Day Winning Streak as Markets Look to Muhurat Trading

Indian equities enter the festive Diwali Muhurat Trading session with a strong technical setup after a sharp seven-session market rally. The Nifty 50 gained 493 points on Friday to close out a weekly surge of 8.58 percent, or nearly 1,977 points, reclaiming the 25,000 mark.

Market Performance

Between Diwali 2025 and Diwali 2026, the Nifty 50 declined 2.59 percent and the Sensex fell 3.35 percent, while midcaps and smallcaps posted modest gains. Global markets fared better during the same period, with Japan's Nikkei surging 13.08 percent and South Korea's KOSPI jumping 23.63 percent. On Dalal Street, pharma and metal stocks led sector gains, whereas FMCG, IT and realty lagged. BSE emerged as the top Nifty 50 performer with a 52.3 percent gain, while ITC plunged 30.94 percent.

Analyst Views

Nagaraj Shetti of HDFC Securities noted that a long bullish candle signals a breakout above the 24,700 to 24,800 resistance zone, with the Nifty potentially heading towards 25,500. Ponmudi R of Enrich Money stated that major indices are now trading above their key exponential moving averages, reflecting an improved technical structure. Meanwhile, Rajeev Sharan of Brickwork Ratings highlighted that foreign investors bought Indian equities worth ₹14,975 crore on Thursday, marking the largest single-day inflow of 2026, while the Reserve Bank of India absorbed ₹25,000 crore through a reverse repo auction.

Context

Muhurat Trading is a symbolic one-hour trading session held across Indian stock exchanges on the evening of Diwali to mark the beginning of the traditional Hindu financial year, Samvat. Market analysts closely watch these sessions and the surrounding price movements as indicators of investor sentiment for the upcoming festive year.