1 week Ago By Moneycontrol
Broader indices performed mixed in the volatile week ended April 25, with BSE Large and Midcap indices rising 0.6 percent and 1.3 percent, respectively, while the BSE Small-Cap index ended on a flat note.
The broader indices continued the previous week, gaining momentum and providing solid gains in the first three sessions of the week, but were weighed down by escalating geopolitical tensions between India and Pakistan after the terror attack in Pahalgam. For the week, the BSE Sensex index added 659.33 points or 0.
83 percent to close at 79,212.53, and Nifty50 rose 187.7 points or 0.
78 percent to close at 24,039.35. In April till now, both the main indices have gained more than 2 percent each.
Among sectors, the Nifty Information Technology index rose 6.5 percent, the Nifty Auto index added 3 percent, Nifty Realty and Pharma indices rose 1.6 percent each.
However, the Nifty Media index fell 2 percent, and the Nifty Consumer Durables index shed nearly 1 percent. "Indian equity markets gained on a weekly basis, with both Nifty 50 and Sensex 30 indices gaining close to 1%. Overall market breadth remained positive with weekly gains seen in the mid-cap, small-cap, and most sectoral indices.
Post a large underperformance over the past few weeks, the IT index rebounded and performed strongly this week as IT companies continue to report their Q4FY25 earnings. Auto stocks also gained this week, post concerns amid tariff war," said Shrikant Chouhan, Head Equity Research, Kotak Securities. "Global equities continued to witness a relief rally on expectations of a ramp-down of US tariffs.
FII buying was positive this week, supporting Indian equities. Stocks in the near to medium term will continue to react to Q4FY25 results, management commentary, geo-political events, and development with respect to the tariff war. The lower oil prices, expected normal monsoon, and rate cuts are positives for the Indian equity markets," he added.
The Foreign Institutional Investors (FIIs) extended their buying in the second week as they bought equities worth Rs 17,796.39 crore, while Domestic Institutional Investors (DIIs) purchased equities worth Rs 1,131.81 crore.
The BSE Small-cap index ended with marginal gains. Rajratan Global Wire, Thyrocare Technologies, Best Agrolife Peninsula Land, Carraro India, Aptech, Deccan Gold Mines, Vardhman Special Steels added between 21-32 percent. On the other hand, Gensol Engineering, Sterlite Technologies, Pearl Global Industries, Blue Star, Syngene International, Unimech Aerospace and Manufacturing, KR Rail Engineering, EPack Durables, Ramkrishna Forgings, PCBL Chemical, NELCO, and Gujarat Themis Biosyn fell between 10-22 percent.
Where is Nifty50 headed? Amol Athawale, VP-Technical Research, Kotak Securities: We believe that as long as the market is trading below 24100/79300, the correction wave is likely to continue. On the downside, the market could slip to 23800/78500, and further downside may drag the index down to 23700/78200. Conversely, a breach above 24100/79300 could change market sentiment.
If the market surpasses this level, it could rally to 24400-24500/80200-80500. For the Bank Nifty, 55000 will be the trend-decider level for short-term traders. Below this level, it could retest the 54000-53700 range.
On the flip side, if it moves above 55000, sentiment could improve, increasing the chances of reaching 55800-56000. Rajesh Bhosale, Equity Technical Analyst, Angel One Given the strong uptrend, a time-wise correction seemed more probable, but the geopolitical uncertainty led to a sharper price correction instead. Despite this, the overall structure remains positive.
By surpassing the February-March swing highs, Nifty has confirmed a strong bullish breakout on the charts. The breakout zone around 23900–23800 provided crucial support on Friday and continues to act as a key pivotal level. If geopolitical tensions escalate or this support is breached, a deeper correction towards the 23500–23300 zone could unfold.
On the upside, while the broader trend remains bullish, immediate resistance is seen at 24250–24350. A move above this zone would confirm a continuation of the primary uptrend. Traders should stay cautious and monitor these key levels, as the next leg of the move may not be as smooth as the recent rally.
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