Weekly Update- 03 October 2025

NIFTY50

Nifty gained 0.97% during the week, closing at 24,894, marking a recovery-driven performance after early consolidation. The week started on a flat note amid subdued global cues, but as it progressed, the index found strong buying interest near support levels. A sharp upside move on Wednesday, led by short covering and broad-based participation across midcaps and smallcaps, reinforced the view that the market is attempting to form a near-term bottom. Sector rotation remained healthy, with selective strength seen in banking, capital goods, and IT stocks, while profit booking was limited at higher levels. Going ahead, support is placed around 24,600, while resistance is seen near 25,200. The overall setup remains constructive with a buy-on-dips approach favored as long as the index sustains above its key support zone.

BANKNIFTY

Bank Nifty gained 2.21% during the week, closing at 55,589, showcasing strong recovery momentum after a steady start. The week began on a flat note, but as it progressed, the index rebounded sharply from key support levels, aided by short covering and renewed buying interest, especially on Thursday. The index outperformed the Nifty, reflecting broad-based strength within the banking space. Notably, PSU banks outperformed private banks, indicating rotational buying and improved sentiment in the public sector segment. The overall structure suggests that Bank Nifty is attempting to form a near-term bottom, supported by sustained participation across broader markets. Going forward, key support lies at 54,600, while resistance is placed near 56,000. The view remains positive with a buy-on-dips approach as long as the index holds above its support zone.

BEST PERFORMING SECTOR

NIFTY PSU BANK was best performing sector for the week

Top gainers include:-

INDIANB: up by 8.44%

CANBK: up by 6.62%

BANKBARODA: up by 6.24%

PNB: up by 6.1%

IMPORTANT NEWS

• The National Stock Exchange will reduce Nifty 50 futures and options lot size from 75 to 65, effective December 30, 2025, for contracts expiring thereafter. This revision, also impacting Bank Nifty and other indices, aims to balance contract values. Traders will need to adjust position sizes and margin requirements, while retail investors may find contracts more accessible.

• Bajaj Finance delivered a robust operational performance in Q2 FY26, with Assets Under Management surging 24% year-on-year to Rs 4,62,250 crore. The company expanded its customer base to 110.64 million, adding over 4 million new customers, while new loan bookings jumped 26%. This strong growth follows a 22% profit increase in Q1, underscoring consistent financial strength and retail traction.

• RBI Monetary Policy Meeting Live Updates: RBI kept the repo rate unchanged at 5.5%, maintaining a Neutral stance. It also retained its FY26 GDP growth forecast at 6.5% despite US tariffs on Indian imports. CPI headline inflation declined for the eighth consecutive month to a 77-month low of 2.1 per cent in June, RBI Governor said. RBI aspires India to grow at 6.5%+ rate.

• Palestinian Islamic Jihad endorsed Hamas's acceptance of key parts of President Trump's Gaza peace plan, including ending the war and releasing hostages. This move sparked global optimism and prompted Israel to prepare for immediate implementation of the first stage, focusing on hostage release, and reduce offensive operations, despite lingering unresolved issues.

• Vedanta Ltd has extended the deadline for its planned demerger to March 31, 2026, citing pending approvals from the National Company Law Tribunal (NCLT) and other government authorities. The Anil Agarwal-led firm had earlier shifted the timeline from March 2025 to September 2025.