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Informist, Wednesday, Nov. 19, 2025

 

By Gopika Balasubramanium

 

MUMBAI – Indian equity indices are expected to consolidate in the near term due to a lack of fresh triggers and the recent rally. Analysts said there is limited downside for the indices, given the visibility of earnings growth in the coming quarters and the likely closure of the India-US trade deal soon. Technically, it is important for Nifty 50 to cross and sustain 26000-26100 points to see further upside, though the market sentiment remains positive, they said.

 

"Nifty (50) has reached the immediate resistance of 26100 spot levels," Vipin Kumar, assistant vice president – technical and derivatives at Globe Capital Market, said. "Going ahead, cross and sustenance above the same (26100 points) hold the key for further up move towards 26300-26500 spot levels," he added. "Failure to sustain above the same will result in further consolidation in the 26100-25700 spot zone," he said.

 

The Nifty 50 Wednesday closed at 26052.65 points, up 142.60 points or 0.6%. It managed to end above 26000 points on a recovery in shares of index heavyweight HDFC Bank, which carries nearly 13% weightage in the 50-stock index. The bank's shares, which had fallen around 1% during the session, recovered to close slightly higher. The BSE Sensex closed at 85186.47 points, up 513.45 points or 0.6%. 

 

"As we look ahead, our market has diverged from US market trends while maintaining a bullish outlook," Osho Krishan, chief manager – technical and derivative research at Angel One, said. "We intend to adopt a buy-on-dips strategy, anticipating dips to augur well for bulls and a potential breakout in the near future," he said.

 

Analysts said the mid- and small-cap indices will see some selling pressure. Valuations of these companies seem a bit elevated, some analysts said, adding that the earnings growth trajectory of only select companies is promising. In the September quarter, mid-cap companies outperformed their small-cap peers in terms of net profit growth, ICICI Securities said in a report. Some analysts said investors were drawn to newly listed companies, and their interest in initial public offerings diverted investments from mid- and small-cap companies. 

Analysts said that while Indian equities have delivered low returns over the past year, they are poised for strong upside in the coming months. The optimism is underpinned by improved macroeconomic factors, including policy measures, low inflation, and a better monsoon. While some analysts are concerned about the valuations of large-cap stocks, others say they are fairly valued.

 

Information technology stocks will be in focus in the coming sessions amid the global sell-off in artificial intelligence stocks, especially in the US, driven by lofty valuations. Analysts see strong upside potential for the Nifty IT index, with some expecting it to climb to 41000 points in the near term. The index, which hit a four-month high of 37116.50 points during the day, closed 3% higher at 37044.65 points. Investors will focus on Nvidia Corp.'s September-quarter earnings to provide insights into global demand for AI. The minutes of the US Federal Open Market Committee's October meeting, which are due by midnight Thursday, will also be monitored.  End

 

Edited by Saji George Titus

 

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