Weekly Update-16 May 2025

NIFTY50

The index closed the week with a strong gain of 4.21%, settling at 25,019. The rally was triggered by positive developments, including the India-Pakistan ceasefire announcement and progress in the US-China trade deal, which led to a strong gap-up opening on Monday. Broader markets also participated in the uptrend. While the index traded in a consolidative range for most of the week, a sharp short-covering rally in the second half of Thursday propelled the index sharply higher. Key resistance is seen around 25,700, while immediate support is placed near 24,900.

BANKNIFTY

The index closed the week with a gain of 3.28%, settling at 55,354.90. The week started on a strong note, driven by positive cues such as the India-Pakistan ceasefire announcement and encouraging developments on the US-China trade front. This led to a gap-up opening and strong momentum, with broad-based participation across sectors. After the initial surge, the index moved into a consolidation phase for most of the week. However, a sharp short-covering rally in the second half of Thursday reignited bullish momentum. Key resistance is seen around 56,100, while support is placed near 54,500.

Best Performing Sector of the week

The Nifty Realty was best performing sector of this week

Major gainers include:-

Anant Raj: up by 19.91%

DLF: up by 13.33%

Sobha: up by 12.10%

Prestige estate: up by 11.83%

Important News:-

• Metal Stocks: Vedanta, Hindalco, Nalco share price rebounded 4-13% during week ending 16 May 2025. While the US- China tariff talks raise hopes on improvement in base metal prices.
  
• Among the defence stocks, Paras Defence and Space Technologies and Mishra Dhatu Nigam gained big—over 25 per cent—followed by Astra Microwave Products, Data Patterns (India), Bharat Dynamics, Hindustan Aeronautics (HAL), Bharat Electronics, and Droneacharya Aerial Innovations.

• Foreign institutional investors (FIIs) have turned net buyers over the course of the last trading week, pointing to easing volatility.
  
• Defence Stock: BEL share price will come in focus on Monday as it announced   ₹572 Crore Defence order inflow. This includes those for Integrated Drone Detection and Interdiction System too.

• Moody’s cuts US’ triple-A credit rating by one notch citing rising debt; changes outlook to ‘stable’.