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Indian equity markets ended last week under pressure, with benchmark indices struggling to hold gains despite brief recovery attempts during the previous two sessions. Weak technical indicators, continued selling in broader markets, and pressure in heavyweight banking and energy stocks kept sentiment cautious heading into the new trading week.

Speaking to ET Now, Rupak De, Sr Tech Analyst, LKP Securities highlighted that the undertone of the market continues to remain weak, especially after the Nifty once again failed to sustain above key resistance levels.

Responding to the weakness, Rupak De said, “So, definitely, after two green days we are back in the red again. And it found resistance around the previous low of around 23,800 and then it came back to the lower level. And also, it found resistance around its 20 EMA on the daily time frame and 50 EMA on the hourly time frame.”

He further added that the technical structure of the benchmark index is turning increasingly fragile in the near term.

“So overall, Nifty is forming a lower top on the daily as well as on the hourly chart. The chart setup is a bit descending and a bearish setup is forming for the short term. Negativity might prevail, but we have support. Though the support is a bit fragile, we have support at 23,500. Once the support of 23,500 is broken, then we are good to go towards 23,150 and below that also,” he said.

Banking Stocks Add to the Weakness
The banking pack, which often determines the broader direction of the market, also appears vulnerable according to the analyst. He pointed out that Bank Nifty has repeatedly failed to cross important resistance levels over the past few sessions.
“For Bank Nifty, Bank Nifty is also going to support Nifty as for the last two days it has been finding resistance around its 50 EMA on the hourly chart and the chart is a bit bearish and sentiment might remain negative in the short term or till the time it is remaining below 54,500,” he said.
He expects the banking index to remain under pressure in the near term, adding, “On the lower end I expect Bank Nifty to move towards 52,500 kind of level in the near to short term as all the big boys in the banking space are looking very-very bearish.”

Sharp Correction in Smallcaps Raises Questions
The broader market witnessed deeper cuts compared to frontline indices, especially in the smallcap space. The Nifty Smallcap index registered a steep fall for the week, ending its six-week gaining streak and raising concerns among retail investors.

However, despite the correction, Rupak De believes the structural trend in the midcap and smallcap segment remains healthy after the sharp rally seen earlier.

“Smallcap and midcaps have corrected recently significantly. However, if we consider the preceding rally, the preceding rally was spectacular. In fact, Nifty Midcap made a new all-time high in this recent rally just before the current fall,” he said.

He maintained that selective buying opportunities are emerging in the broader market despite near-term volatility.

“So, I would definitely put my money in midcap as well as in the smallcap and though the larger contribution would remain into the largecap, but I would definitely put my significant capital into mid and smallcap,” he added.

Reliance Industries Fails to Inspire Confidence
Among the major laggards during the last week was Reliance Industries, which remained under selling pressure amid weak technical signals.

Rupak De indicated that the stock currently lacks trading comfort on both the long and short side.

“So, Reliance chart is not very tempting. Chart says me to stay away from it because the stock recently has fallen below all the important moving averages and currently it is good to go to make a new low below 1300,” he said.

He also cautioned traders against aggressive short positions after the recent decline.

“So, I would wait and also on the short side I would not be comfortable taking short because it has already fallen by 150 kind of points. So, long or short I would not trade Reliance in the short term,” he added.

FMCG and Pharma Continue to Offer Stability
While broader market sentiment remains shaky, defensive sectors such as FMCG, healthcare, and pharmaceuticals continue to show resilience.

Sharing his preferred trading idea, Rupak De said that Marico stands out on the charts after a phase of consolidation.

“Yes, definitely. Some of the stock which I am liking are like Marico. For the last few days, FMCG, healthcare, and the pharmaceutical stocks are doing good. So, my pick would be Marico,” he said.

He believes the stock could witness an upside breakout once the current consolidation phase ends.

“After the decent rally, the stock has been consolidating for the last three-four days and I expect once the consolidation ends, it is likely to end on the higher end. Upside breakout is expected and on the higher end the stock might move towards 880 in the short term,” he added.

According to him, the stock can be bought around current levels with a stop loss placed below 824.

Jewellery Stocks Remain Mixed
The jewellery segment, which had seen strong investor interest in recent months, is now showing signs of exhaustion in select counters.

Rupak De expressed caution on Kalyan Jewellers, citing continued weakness in the stock structure.

“So, among the jewellery stocks, they are with a mixed view, like Kalyan Jewellers I find the stock is falling towards its low, currently it has corrected significantly, then there was a consolidation, then again it is getting ready for further fall,” he said.

He advised investors to remain cautious, adding, “So, I would be happy if I exit from the stock at the current level because I expect the stock might move towards 330 in the short term.”

SYDNEY — Commonwealth Bank of Australia shares climbed to a new intraday high of $160.79 on Monday, gaining $1.39 or 0.87 percent, as investors rewarded the country’s largest lender for its resilient performance amid stable interest rates and solid economic conditions in the domestic market.

The modest but steady gain pushed CBA’s market capitalization above A$270 billion, reinforcing its position as one of Australia’s most valuable public companies and a bellwether for the broader banking sector. Trading volume was elevated throughout the session, reflecting continued investor confidence in the major banks despite global economic uncertainties.

CBA’s upward movement came as the broader S&P/ASX 200 index traded mixed, with financial stocks outperforming resource names that faced pressure from softening commodity prices. The bank’s shares have now risen more than 12 percent year-to-date, outperforming the benchmark index and highlighting the defensive appeal of Australia’s big four banks in the current environment.

Commonwealth Bank CEO Matt Comyn expressed optimism about the bank’s positioning when speaking at a recent industry conference. “We continue to see resilient customer balance sheets and disciplined lending growth across our key portfolios,” Comyn said. “Our focus remains on supporting customers through the cycle while delivering sustainable returns for shareholders.”

Strong First-Half Results Underpin Confidence

The share price strength follows CBA’s recent first-half results, which showed a 6 percent increase in cash earnings to $5.1 billion. The bank maintained a strong net interest margin despite competitive pressures and benefited from lower loan impairment charges as Australian households continued to demonstrate financial resilience.

Analysts highlighted CBA’s diversified revenue base, including wealth management, business banking and institutional services, as a key advantage. Morningstar analyst Jonathon Mott maintained a “buy” recommendation on the stock, citing its market-leading position and attractive dividend yield.

“Commonwealth Bank remains the highest-quality franchise in the Australian banking sector,” Mott said. “Its capital strength, customer franchise and digital capabilities position it well for continued outperformance even as the economic environment evolves.”

Interest Rate Environment Supports Banks

The Reserve Bank of Australia’s decision to hold the cash rate steady at 4.35 percent has provided a relatively stable backdrop for the major banks. While mortgage holders face ongoing pressure from higher borrowing costs, strong employment and wage growth have helped contain bad debts.

CBA reported a low impairment ratio of just 0.12 percent of gross loans, well below historical averages. The bank also increased its interim dividend to $2.45 per share, maintaining its status as one of Australia’s highest-yielding blue-chip stocks.

However, not all commentary was positive. Some analysts warned that rising competition in the mortgage market and potential regulatory changes could pressure margins in the second half of the year. The Australian Prudential Regulation Authority continues to monitor household debt levels closely, which could lead to tighter lending standards if economic conditions deteriorate.

Broader Banking Sector Performance

CBA’s gain came as peers also traded higher. Westpac rose 0.6 percent, ANZ increased 0.4 percent, and National Australia Bank added 0.7 percent. The financial sector as a whole outperformed the broader market, reflecting investor preference for defensive, dividend-paying stocks amid global volatility.

The strength in Australian banks contrasts with mixed performance in other sectors. Mining stocks faced headwinds from weaker iron ore and copper prices, while technology and consumer discretionary names showed varied results depending on individual company news.

Investor Sentiment and Market Outlook

Institutional investors appear to be increasing exposure to the major banks, drawn by attractive valuations and reliable dividends. CBA currently offers a forward dividend yield of approximately 4.2 percent, making it appealing for income-focused portfolios in a higher interest rate environment.

Retail investors have also shown strong interest, with CBA consistently ranking among the most traded stocks on the ASX. Self-managed superannuation funds in particular have maintained significant holdings in the big four banks, viewing them as core long-term investments.

Looking ahead, analysts expect the banking sector to remain resilient provided the Australian economy avoids a sharp downturn. The labor market remains tight, consumer spending is holding up, and house prices have stabilized in most capital cities. These factors support continued demand for credit and limit the risk of significant bad debt increases.

However, risks remain. A sharper-than-expected slowdown in China could impact commodity prices and regional economies, while any renewed global banking stress could affect sentiment toward the sector. Domestic regulatory changes around climate risk and responsible lending could also influence bank profitability over time.

Strategic Initiatives Driving Growth

CBA has invested heavily in digital transformation and customer experience initiatives. Its mobile banking app continues to lead the market in user satisfaction, and the bank has expanded its wealth management offerings through the integration of recent acquisitions.

The lender is also positioning itself for growth in emerging areas such as sustainable finance and small business lending. These strategic moves are intended to diversify revenue streams and reduce reliance on traditional mortgage lending, which has faced margin pressure in recent years.

Comyn has emphasized the importance of technology and innovation in maintaining CBA’s competitive edge. “We are investing in the capabilities that will define banking in the decade ahead,” he said. “Our customers expect seamless digital experiences, and we are committed to delivering them.”

What This Means for Investors

For long-term investors, CBA continues to represent a high-quality Australian blue-chip stock with strong fundamentals and a proven track record of delivering shareholder returns. The current share price offers a reasonable entry point for those building diversified portfolios with exposure to the domestic economy.

Short-term traders may find opportunities in the stock’s volatility around earnings releases and economic data points. However, the bank’s defensive characteristics make it better suited for buy-and-hold strategies rather than short-term speculation.

Financial advisers recommend considering CBA within the context of an overall asset allocation strategy. Its relatively low beta compared to more cyclical sectors can provide portfolio stability during periods of market turbulence.

Broader Economic Context

CBA’s performance reflects the underlying strength of the Australian economy despite global headwinds. Strong employment, contained inflation and resilient consumer spending have supported the banking sector even as other parts of the economy face challenges.

The Reserve Bank of Australia’s cautious approach to monetary policy has created a relatively predictable environment for lenders. While further rate hikes remain possible if inflation proves sticky, most economists expect the cash rate to remain on hold for the foreseeable future.

As Australia navigates an environment of higher interest rates and global uncertainty, CBA’s ability to maintain profitability and capital strength positions it favorably compared to many international peers.

The bank’s steady share price appreciation this year demonstrates investor confidence in its management team and business model. For those considering exposure to the Australian market, CBA remains one of the most reliable and transparent large-cap options available on the ASX.

With solid fundamentals, attractive dividends and a clear strategic direction, Commonwealth Bank continues to justify its place as a core holding for many Australian and international investors. As the year progresses, its performance will be closely watched as a key indicator of the health of both the domestic economy and the broader banking sector.

Hindustan Copper shares rallied 4% to their days’ high of Rs 592 on the NSE on Monday after the company reported a consolidated net profit of Rs 444 crore for the March quarter, sharply higher than the Rs 189 crore posted in the same period last year, marking a 134% year-on-year (YoY) increase.

Revenue from operations climbed 58% to Rs 1,156 crore in Q4FY26 from Rs 731 crore in the corresponding quarter of the previous financial year, the company said in a regulatory filing on Friday.

EBITDA jumped to Rs 627 crore from Rs 266 crore in the corresponding quarter last year. Operating margin improved sharply to 54.3% from 36.4%, supported by better operational efficiency and stronger profitability.

On a sequential basis, profit after tax jumped 184% from Rs 156 crore reported in Q3FY26. Revenue also rose 68% quarter-on-quarter (QoQ) from Rs 687 crore recorded in the October-December period.

Total expenses during the quarter stood at Rs 597 crore, compared with Rs 397 crore in Q3FY26 and Rs 519 crore in Q4FY25. This reflects a 50% increase sequentially and a 15% rise year-on-year. The expenditure was incurred towards raw material consumption, employee benefits, finance costs, and power and fuel expenses.

For the full financial year, Hindustan Copper posted revenue of Rs 3,078 crore against Rs 2,071 crore, registering a growth of 49%. Net profit for FY26 came in at Rs 921 crore, up 97% from Rs 467 crore reported in the previous financial year.
The board also approved a proposal to raise up to Rs 500 crore through non-convertible debentures (NCDs) or bonds via private placement. In addition, the company also cleared plans to raise funds through a qualified institutional placement (QIP) of up to 9.69 crore equity shares to finance capital expenditure and expansion projects approved by the Cabinet Committee on Economic Affairs (CCEA).The company has also laid out a broader digital transformation roadmap that includes ERP modernisation, deployment of private 5G networks, AI- and machine learning-driven analytics, and integrated command centres to support its long-term growth plans.

The board also recommended a dividend of Rs 1.86 per share for FY26. The payout will be made after shareholder approval at the upcoming Annual General Meeting (AGM), while the payment date will be announced separately.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given that any particular security, portfolio, transaction or investment strategy is suitable for any specific person. The author is not advising you personally concerning the nature, potential, value or suitability of any particular security or other matter. You alone are solely responsible for determining whether any investment, security or strategy, or any product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. The author is an employee of Seeking Alpha. Any views or opinions expressed herein may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank.