Stock market news: The domestic benchmark indices, Nifty 50 and Sensex, closed the trading session flat on Friday after experiencing a volatile day, yet the overall sentiment remained slightly optimistic as major indices recovered from their intraday lows due to buying at key support levels.
After facing significant selling pressure in the morning, the indices gradually bounced back in the latter half of the day, supported by gains from heavyweight Reliance Industries.
By the end of the trading session, the Sensex dipped by 7.25 points or 0.01 percent to close at 80,710.76, while the Nifty 50 increased by 6.70 points or 0.03 percent, finishing at 24,741.00.
Dharmesh Shah from ICICI Securities thinks that if the Nifty 50 maintains the 24,200 levels and manages to close above the upper limit of the range at 25,000, it will trigger additional upward momentum toward the 25,300 levels. Investors should consult experts before making decisions. Shah recommends one stocks to buy this week. Here’s what he says about the overall market.
Market Outlook by Dharmesh Shah, Vice President, ICICI Securities
Equity benchmarks Snapped the two-weeks of losing streak and closed at 24,741 with a weekly gain of ~ 1%. Despite an initial surge following GST rate rationalization announcements, markets witnessed profit-booking from higher levels. Nifty midcap and small cap relatively outperformed the benchmark by gaining 2.50%, each. Sectorally, Barring IT and Realty all indices closed in green where, Auto, Metals and Consumer Durable were the major outperformers. The weekly price action formed an inside bar carrying higher-low, indicating pause in the downward momentum.
Key point to highlight is that, Nifty 50 reclaimed 100-day EMA(24,633) suggesting a potential pause in the prolonged corrective phase and scope for trend reversal. Going ahead, holding 24,200 levels and closing above the upper band of the range 25,000 will fuel further upward momentum towards 25,300 levels failing to do so will lead to a broader consolidation in the range of 25,000-24,200.
Going ahead, strong support is placed in the vicinity of 24,200 being 200 days EMA, 38.2% retracement of entire up move seen off April lows, coincided with the previous gap zone of 24,378–24,164, which indicates a high probability of demand emergence at lower levels and continuation of the primary uptrend and a move towards 25,000 which will act as immediate resistance. Current consolidation phase presents opportunities to accumulate quality stocks backed by strong earnings, particularly those poised to benefit from next-generation GST reforms and upcoming festive season.
Structurally, Auto Index witnessed a strong breakout from the weekly Inverse head & shoulder formation, supported by GST reforms. The breakout signals continuation of momentum with scope to retest its all-time high with a 10% upside potential in next couple of quarters. The US 10-year bond yield has broken down from contracting triangle on daily time frame, A sustained decline in the yield is likely to reinforce the positive correlation with the IT index and IT stocks have 11% weightage in Nifty 50, offering supportive cues for the markets.
On the market breadth front the % of stocks above 50 days EMA has bounced from the oversold zone of 25-30 last week and improved where it is currently placed at 38 offering incremental buying opportunity.
On the broader market front, both Nifty Midcap and small cap has been trading in the vicinity of 52-week EMA which has been held since April 2025 offering an incremental buying opportunity.
a) Development of Bilateral trade deal negotiations.
b) US PPI / CPI MoM / Labour data.
d) U.S. Dollar index continues to trade below the past two years breakdown area of 100, indicating corrective bias while crude oil sustaining below 20-week EMA and closed the week on a negative note.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Supreme Industries shares this week.
Buy Supreme Industries shares in the range of ₹4,530-4,580. He has Supreme Industries share price target of ₹5,180 with a stop loss of ₹4,315.
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 05/09/2025 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.
