Stock market news: The benchmark equity indices, Sensex and Nifty 50, experienced significant gains on Friday, following a global market upswing driven by increasing speculation that the US Federal Reserve will reduce interest rates next week. Increased optimism regarding the successful completion of trade discussions between India and the US has also contributed to the market surge.
For the fifth consecutive day, the 30-share Sensex rose by 355.97 points, or 0.44 percent, concluding at 81,904.70. At its peak during the day, it soared by 444.12 points, or 0.54 percent, reaching 81,992.85.
The 50-share Nifty 50 increased by 108.50 points, or 0.43 percent, to close at 25,114, marking its eighth consecutive day of growth.
Dharmesh Shah from ICICI Securities believes that favourable results from US Federal Reserve meetings and US tariff discussions would help propel the Nifty 50 towards 25,800 in the upcoming months. At the same time, a solid support level at 24,400 will remain crucial. Shah recommends two stocks to buy in the coming week. Investors should consult experts before making decisions.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity benchmark extended gains over second consecutive week and settled at 25,114, up 1.5%. Nifty midcap and small cap relatively outperformed the benchmark by gaining ~2%, each. Beaten down sectors like IT, Defence, PSU Banks staged a strong rebound while Consumer Discretionary took a breather. The weekly price action formed a bull candle carrying higher high-low, indicating continuation of the upward momentum.
Key point to highlight is that, the follow through strength in index on the back of GST Reforms supported by positive development on Tariff negotiations and buoyancy in global markets (as rate cut expectations in upcoming US Fed meet) boosted market sentiments. That in turn helped index to head towards upper band of contracting pattern (25,100-24,400).
Going ahead, the formation of higher high-low back by improvement in market breadth makes us confident that Index will log a resolute breakout from contracting triangle (25,100-24,400). Further, positive outcome from US Fed meets as well as US Tariff negations would fuel the momentum to drive Nifty 50 towards 25,800 in coming months. Meanwhile, strong base of 24,400 would continue to act as key support threshold.
On the sectoral front, key index heavy weights like Bank Nifty and IT (carrying 45% weightage in Nifty 50) are getting ready for next leg of up move. Since December 2022, Bank Nifty is trading in a channelised move wherein the intermediate correction are getting arrested within 10% (average). While history suggest that, buying Bank Nifty near 52 weeks EMA has been fruitful over next 8 months. With current 7% correction, Bank Nifty approached 52 weeks EMA, suggesting index is approaching price wise maturity of correction amid oversold condition that augurs well for impending pullback.
Meanwhile, Nifty IT index’s past 10 years data suggest that 35% correction offers incremental buying opportunity. With current 33% correction along with improvement in global macros (rate cut) would help index to revive upward momentum. Thereby offering favourable risk reward setup.
On the market breadth front, the % of stocks above 50 days SMA have once again maintained the rhythm of bouncing from bullish support zone of 25%. The current jump to 48% clearly signifies broadening of market participation. On the broader market front, both Nifty Midcap and small cap have bounced from the vicinity of 52-week EMA amid oversold conditions, indicating an incremental buying opportunity from medium term perspective.
Key monitorable:
a) Development of Bilateral trade deal negotiations.
b) Breakdown from one year falling trend line in US 10 Year Bond Yield along with Dollar index below 98 augurs well for emerging markets.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying State Bank of India (SBI), and Bharat Electronics Ltd (BEL).
Buy SBI shares in the range of ₹804-824. He has SBI share price target of ₹882 with a stop loss of ₹787.
Buy BEL shares in the range of ₹389-399. He has BEL share price target of ₹424 with a stop loss of ₹375.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 12/09/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
