Stock Market Prediction: Will Bull Continue, Or Bear Bounce Back? Sensex, Nifty Forecast & Key Stocks To Watch Next Week

Stock Market Prediction: Indian stock markets ended the week on a strong note, driven by easing geopolitical tensions, falling crude oil prices, and fresh buying interest across sectors. Over the past five trading sessions, the BSE Sensex jumped from 81,567.20 points to 84,058, rising 2,491.70 points or about 3.05%.

The Nifty 50 gained 728.90 points to close at 25,637.80, up 2.93%. The Bank Nifty climbed 1,550.50 points to 57,443.90, marking a 2.77% rise.

Equity investors became richer by Rs 12.26 lakh crore as the Sensex climbed for the fourth straight session on Friday, reclaiming the 84,000 level.

According to analyst Sudeep Shah, Deputy Vice President and Head of Technical & Derivatives Research, SBI Securities, the market has broken out of a long consolidation phase. “For 31 trading sessions, the Nifty moved in a narrow consolidation range, building silent pressure with every passing day. Like an audience holding its breath before the climax, the market was coiling, waiting for a trigger,” SBI Securities said in a note.

“That moment finally arrived this week, as Nifty broke free from its range-bound structure, delivering a sharp upside move that ended the week above the 25,600 mark.”

They added that this move confirmed a structural breakout. “More importantly, this move led to the highest weekly close since September 2024, confirming that the breakout wasn’t just symbolic—it was structural,” the note said.

Nifty Prediction Next Week

SBI Securities expects Nifty to continue its northward journey in the coming weeks and test 25,800, followed by 26,100 in the short term. On the downside, the zone of 25,400–25,350 is likely to act as a cushion if there is any decline.

The brokerage pointed to supportive macro factors such as the dollar index cooling to a three-year low, crude oil stabilising near $67–68 per barrel, a normal monsoon forecast, and the RBI starting an interest rate easing cycle. “These factors provide a solid foundation for the ongoing structural upmove in the Nifty,” SBI Securities said.

Sensex Prediction Next Week

While SBI Securities did not give specific Sensex levels, since the Sensex and Nifty move closely together (with roughly a 3.05% gain this week), the Sensex could also continue higher, potentially climbing another 2–3% in the near term if Nifty targets are achieved.

This implies the Sensex might approach or cross 86,000 in the short term if market momentum holds.

Bank Nifty Looking Strong

Bank Nifty also showed notable strength, closing at fresh all-time highs over the last two sessions and outperforming the Nifty. According to SBI Securities, this performance is backed by a bullish “cup” pattern breakout on the daily chart.

“Bank Nifty continues to trade above all its crucial short-term and long-term moving averages,” SBI said. “Momentum indicators such as RSI and MACD remain firmly in bullish territory.” The brokerage expects Bank Nifty to target the 59,000 level in the near term, with 56,800–56,700 providing support if the index pulls back.

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Foreign Investors Turning Positive

Foreign Institutional Investors (FIIs) have turned net buyers for the fourth month in a row, boosting confidence in the domestic market. SBI noted that the FII long-short ratio in index futures climbed to 38.43%, one of the highest recent levels. “A rising long-short ratio indicates that FIIs are increasingly building long positions—a bullish sign,” the note said.

Sectors Likely to Outperform Next Week

SBI Securities said several sectors are showing signs of strength and could perform well in the coming days. Nifty Private Bank, Nifty Financial Services, Nifty Oil & Gas, and Nifty Infrastructure have all moved out of their earlier sideways range, which suggests they may see more gains ahead.

Nifty Auto has broken above a trendline with strong momentum signals. Nifty India Tourism is also close to a breakout and could rise further if it stays above 9,300.

In addition, Nifty Healthcare, Pharma, and Metal indices are improving and look set to outperform. Falling crude oil prices are likely to help aviation and oil marketing companies as well.

Key Stocks to Watch

Among individual stocks, SBI Securities sees bullish setups in Apollo Hospitals, Hindustan Petroleum, HDFC Life, Ultratech Cement, ICICI Prudential Life Insurance, Indigo, Ambuja Cement, LT Foods, and Glaxo.

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