Nifty 50 and Sensex 30 moved higher this week by around 1%
Shrikant Chouhan,
Head Equity Research,
Kotak Securities
Mumbai, September 19, 2025: Indian equity markets delivered positive weekly returns amid broader strength in the global equities. Rally in the global markets was supported by the 25 bps rate cut announced by the US Fed. In India, the larger indices like Nifty 50 and Sensex 30 moved higher this week by around 1%. The midcap and smallcap index outperformed the larger peers with BSE Midcap and BSE Smallcap index posting weekly gains of 1.5-2%. In view of positive momentum, almost all the key sectoral indices posted positive returns. BSE Realty index led with gains of 4% whereas the FMGC index was an underperformer with flattish returns. India’s CPI inflation was 2.1% in August, as food prices contracted by 0.7%. The GST rate cuts is expected to keep the inflation trajectory under control in the next few quarters. GST rate cut comes into effect from next week and that is expected to keep consumption and other stocks benefiting from lower GST rate in focus. Markets would continue to look for clarity on the US tariff situation and its impact on economic growth.
Amol Athawale, VP Technical Research, Kotak Securities, adds: In the last week, the benchmark indices gained 0.95 percent, while the Sensex was up by 720 points. Among sectors, PSU Bank and Reality indices outperformed. PSU Bank rallied around 5%, and Reality gained 4.5%, whereas some profit booking was seen in FMCG and Consumer stocks. During the week, the market continued its positive momentum. However, on last Friday, it witnessed profit booking at higher levels. Technically, on weekly charts, the market has formed a bullish candle, and on daily charts, it is holding an uptrend continuation formation, which is largely positive.
We are of the view that the short-term market outlook remains bullish, but due to temporary overbought conditions, range-bound activity may occur in the near future. Hence, buying on dips and selling on rallies would be the ideal strategy for traders.
For traders, the key support zones are around 25,200/82300 and 25,150-25,100/82100-81900, while resistance levels are at 25,450-25,500/83200-83400 and 25,600/83700. Below 25,100/81900, the uptrend could become vulnerable.
For Bank Nifty, as long as it remains below 55,700, a weak sentiment is likely to continue. On the downside, it could retest levels of 55, 200,-55000 conversely, if it crosses above 55,700, it could move up to 56,000-56,300.
