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Broader Markets Shine as Nifty Weathers Volatility

ICICIdirect Research 10 Jul 2026 DISCLAIMER

Nifty snapped four weeks winning streak and settled the volatile week on a muted note at 24200, down 0.2%. Broader market defied the benchmark move by gaining 1% wherein midcap index clocked a fresh all-time high. Sectorally, Realty extended its gains along with traction in beaten down sectors like consumer discretionary and IT. Meanwhile, FMCG and PSU Bank extended breather.

Week that was:

Early week anxiety surrounding revived geopolitical tension triggered sharp volatility in the market. Consequently, Nifty retreaded from 200 days EMA that coincided with April high of 24600. However, market sentiments improved in last two sessions on the continuation of technical talk despite recent tension, that helped Nifty to trim the losses for the week 

What we expect:

  • Amidst geopolitical uncertainty, Nifty managed to hold 50 days EMA placed around 23800 that reaffirms strength. Going ahead, we expect, index to regain upward momentum and head towards swing high of 24600 in coming weeks.
  • Structurally, index has been oscillating in 1500 points range (24600-23100) over past three months. A decisive close above 24600 would validate a solid higher base formation and unlock the next leg of medium-term rally
  • We expect volatility to remain elevated as we enter the Q1FY27 earning season. Hence, focus should be on accumulating stocks on dips backed by strong earnings as key support is placed around 23600 levels
  • The US Small cap Index (Russell 2000) has been trading in the vicinity of All Time High after breaking out of 4 years consolidation. Mirroring the buoyancy in the global broader markets, Nifty midcap index reclaimed its All-Time High levels after 6 weeks hiatus. While small cap is just 1.5% away from All Time High.
  • The current up move in the broader market is supported by significant improvement in the market breath. As the reading of % of stocks above 200 days SMA (Nifty 500 Universe) improved to 53% from six weeks back reading of 43% that augurs well for continuation of outperformance going ahead.

Key Monitorable:

  1. Inflation print for India and US
  2. Any positive development on geopolitical front and resultant cool off in crude oil prices
  3. Q1FY27 earnings

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