Weekly Update-1 February 2025

NIFTY50

The Nifty index closed the week with a strong gain of 1.69%, settling at 23,482. The week initially started on a weak note, with the index breaking below the previous week's support levels and closing lower. However, as the week progressed, there was a strong recovery from lower levels, driven by short covering and buying interest in oversold stocks. On Friday, the index broke the previous week's high, triggering further short covering and a sharp upward move. The Budget announcement on February 1 brought volatility on both sides, but the index managed to close the week on a positive note, maintaining strength above the previous week's high. Key support levels for the upcoming week are around 23,250, while resistance is expected near 23,650.

BANKNIFTY

The Bank Nifty index ended the week with a gain of 2.36%, closing at 49,587. The week started on a weak note, with the index breaking below the previous week's support levels. However, as the week progressed, a strong recovery took place, driven by short covering and renewed buying interest in oversold stocks. On Friday, the index decisively broke the previous week's high, leading to further short covering and an extended upward move. The Union Budget announcement on February 1 induced high volatility, with sharp movements in both directions, but the index ultimately closed the week on a strong note, holding above its previous week's high. Key support levels for the upcoming week are around 48,500, while resistance is seen near 50,000.

Top Performing Sector of the week

The Nifty Realty was best performing sector for the week

Major gainers include:-

Sobha: up by 21.06%

Macrotech Developer: up by 16.42%

Prestige estate: up by 14.02%

Brigade: up by 12.9%

Worst Performing Sector of the week

The Nifty IT was worst performing sector of this week

Major losers include:-

Coforge: down by 12.54%

Mphasis: down by 7%

Persistent: down by 6.7%

Hcl technologies: down by 5.51%

Important News:-

• Increased Income Tax Exemption: The personal income tax exemption threshold has been raised to ₹12 lakh, reducing the tax burden on the middle class and encouraging consumption and investment.

• High-Yield Crop Program: A program targeting 1.7 crore farmers has been launched to promote high-yield crop varieties, aiming to boost agricultural productivity.

• Fiscal Deficit Reduction: The government aims to reduce the fiscal deficit to 4.4% of GDP, demonstrating a commitment to fiscal discipline.

• Capital Investment Outlay: The capital investment outlay has been increased by 33% to ₹10 lakh crore, aiming to enhance growth potential and job creation.

• Support for Pulses Production: A six-year mission focusing on self-reliance in pulses, particularly Tur, Urad, and Masoor, has been initiated to enhance domestic production.