Market Opening Update: Nifty 50 Holds Above 25,000, Bank Nifty Eyes 55,000 Resistance
Indian markets started the new trading week on a cautious note. The GIFT Nifty opened nearly 41 points lower, trading around 25,170, while Asian markets showed a positive bias. Despite the weak start, the index continues to hold above last session’s closing levels, reflecting underlying strength.
Nifty 50 Outlook
The Nifty 50 closed above 25,000 last week, signaling that the index has regained momentum. Market experts believe the overall trend remains positive, though short-term retracements cannot be ruled out after consecutive weekly gains.
A key resistance level lies at 25,200, which the index had tested almost six weeks ago but failed to cross. How the market reacts around this level will be crucial for the coming sessions.
Bank Nifty Momentum
The Bank Nifty closed above 54,000 last week and continues to maintain its positive momentum. The next resistance is at 55,000, which analysts expect could be tested without much difficulty. However, sharp rallies are unlikely since India VIX has slipped to 10.12, suggesting low volatility and a steady uptrend rather than sharp spikes.
Top Movers from Last Session
- Gainers: BEL, Bajaj Finance, Bajaj Finserv, and Hindalco led the F&O segment.
- Losers: HAL fell 2%, while Bajaj Auto and IndusInd Bank also slipped.
Commodities Update
Gold prices continue to remain strong, with the yellow metal climbing further after last week’s rally. Silver has nearly touched ₹1,29,000 per kg, inching closer to the ₹1,30,000 mark. Analysts, however, caution that gold charts indicate overvaluation, and investors should remain selective at these levels.
Currency Market
The Indian Rupee showed relative strength against major global currencies including the US Dollar, Euro, Pound, and Japanese Yen.
FII & DII Activity
- Foreign Institutional Investors (FIIs) sold equities worth ₹33,472 crore in the last session.
- Domestic Institutional Investors (DIIs) provided support, buying stocks worth ₹4,045 crore.
The Put-Call Ratio (PCR) remains supportive, hovering around 1.15–1.17.
Stock-Specific Developments
- Société Générale increased its stakes in multiple companies: 0.12% in Bank of Baroda, 24.37 lakh shares in PFC, 60,000 shares in Eicher Motors, and 75,000 shares in Max Financial.
- Tega Industries saw fresh buying of 0.77% stake worth about ₹101 crore by DIIs and wealth funds.
- Shakti Pumps received a ₹374 crore order from MSEDCL to install 12,451 off-grid solar water pumps.
- Dr. Reddy’s Laboratories faced five USFDA observations at its Hyderabad facility, while Aurobindo Pharma’s L B facility reported no concerns.
- Diamond Power won a ₹236.7 crore order from Adani Energy Solutions for 540 km conductors.
- Engineers India Ltd. bagged a ₹68 crore overseas order to provide consultancy for a fertilizer plant project in Africa.
- RailTel secured a ₹210 crore order from the Bihar Education Project Council.
- Adani Power announced a new 2,400 MW supercritical power project in Bihar.
- NCC Ltd. (Siel Infra) received a ₹509 crore road construction order from Greater Mohali Area Development Authority.
Real Estate & Land Prices
With expanding infrastructure in cities like Mohali and Bihar, real estate prices continue to rise. The government has aligned agricultural land prices with urban land values, reducing the cost advantage of buying in city outskirts.
Weak Earnings
- Jubilant Aeromatics reported a 7% drop in profit and a 5.4% decline in revenue.
Trading Ban List
Three stocks remain under the F&O ban list today: RBL Bank, OFS, and HFCL. Traders are advised to exercise caution.
Investment Outlook
Experts emphasize a diversified investment approach—not only equities and SIPs but also real estate, ETFs, and gold. While Sovereign Gold Bonds (SGBs) remain popular, many investors still prefer physical gold for long-term holding.
