More Stories

Informist, Friday, May 16, 2025

By Akash Mandal

MUMBAI – The positive momentum in the benchmark indices is seen continuing next week with the Nifty 50 expected to test the 25200 level. Analysts, however, remain divided on whether the indices would continue to rise after the Nifty 50 climbs to 25200 points, or whether the index would take a breather. Any dip in the Nifty 50 around 25200 points will only be temporary as sentiment is positive on the back of the softer inflation print in April, a relatively stable rupee, and consistent buying by foreign investors, analysts said.

"The trend is positive and the Nifty 50 may test 25200 early next week," Nandish Shah, senior derivative analyst at HDFC Securities, said. Foreign investors will continue with sector rotation as seen this week, he said. Shah said foreign investors have added fresh long positions this week, which indicates a bullish sentiment in the market.

Friday, the Nifty 50 closed at 25019.80 points, down 42.30 points or 0.2%. The BSE Sensex closed at 82330.59 points, down 200.15 points or 0.2%. Analysts peg the immediate resistance for the Nifty 50 at 25200 points and support at 24800–24700 points.

Some analysts expect to see some selling for profit near 25200 points. "We are of the view that, in the short term, the market texture is bullish, but buying on dips and selling on rallies would be the ideal strategy for traders," Amol Athawale, vice-president of technical research at Kotak Securities, said in a note. If the Nifty 50 manages to sustain above 25200 points, it is likely to rise further to 25500 points, he said.

However, Ventura Securities believes the current market is a "bull illusion" and not a bull market. "...the headline index is making new highs. But this isn't a broad-based bull run," the brokerage said in a report. "It's a narrow rally led by a handful of large-caps while the rest of the market has been quietly bleeding."

Despite this week's sharp rally, the Nifty 50 is still 5% away from the lifetime high it hit on Sept. 27. The broader market indices are still 6-9% lower from that date. "If you're not in the handful of heavyweight stocks pulling the index up, you're likely still in pain," Ventura Securities said.

On the earnings front, Divi's Laboratories will report its March quarter results Saturday. Monday, two Nifty 50 companies will report their earnings--Bharat Electronics and Power Grid Corp. of India. The bottom line of Bharat Electronics is seen falling 3% on year primarily due to a high base. On the other hand, Power Grid's net profit is seen rising 5% on year. DLF, NLC India, PI Industries, and Petronet LNG will also announce their March quarter earnings Monday.  End

Edited by Rajeev Pai

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2025. All rights reserved.