Weekly Update-10 January 2025

NIFTY50

The Nifty index ended the week with a sharp decline of 2.39%, closing at 23,431. The week began with widespread panic selling across the market, with mid-cap and small-cap stocks leading the downturn. Throughout the week, the index attempted to hold the crucial support level of 23,500 on a closing basis. However, on Friday, it decisively broke this support, triggering panic selling and closing below this key level.

Looking ahead to the next week, the immediate support is placed around 23,200, which could act as a cushion against further downside. On the upside, resistance is seen near the 23,600 level, which the index must overcome to regain positive momentum.

BANKNIFTY

The Bank Nifty index ended the week with a sharp decline of 4.42%, closing at 48,734. The index significantly underperformed throughout the week, leading the market’s downside due to a steep sell-off in both private and PSU banks, with PSU banks contributing most to the decline.

For the upcoming week, key support is placed around the 48,000 level, which could provide some stability if selling pressure continues. On the upside, resistance is seen near 49,500, and a break above this level would be necessary to signal any potential recovery.

Top Performing Sector of the week

The Nifty IT was best performing sector for the week

Major gainers include:-

L&T Mindtree: up by 6.82%

TCS: up by 4.04%

L&T Technology Services: up by 2.92%

Wipro: up by 2.07%

Worst Performing Sector of the week

The Nifty PSU Bank was worst performing sector of this week

Major losers include:-

Union Bank: down by 16.48%

Bank of Maharashtra: up by 11.57%

Bank of India: up by 9.98%

Central Bank of India: up by 9.38%

Important News:-

• Tata Consultancy Services (TCS): Shares surged by 6% on Friday, reaching their highest since July, following CEO K Krithivasan’s comments indicating a potential demand revival. He noted increased client confidence and quicker deal signings, particularly in North America, which boosted investor sentiment.

• Adani Wilmar: The stock fell by 9.3% following the announcement that the Adani Group would sell its stake at a reduced price. This decision led to a significant decline in share value, reflecting investor concerns over the company’s valuation.

• NTPC Ltd.: Shares declined by 3.78% to ₹308.20, aligning with the overall market downturn. Despite this, NTPC’s focus on renewable energy projects continues to attract long-term investor interest.

• Tata Steel: The share price decreased by 1.89% to ₹127.40, influenced by global economic factors and commodity price fluctuations. The metals sector faced challenges due to concerns over demand and pricing pressures.

• IndusInd Bank: Shares declined by 2.8% after Goldman Sachs downgraded the stock, citing concerns over asset quality and profitability. This downgrade contributed to the bank’s underperformance during the week.