Weekly Update- 21 August 2025

NIFTY50

The index ended the week with a 0.97% gain, settling at 24,870. The week began with a sharp gap-up opening, driven by positive sentiment following the government’s GST reduction announcement on Independence Day. This upbeat trigger fueled follow-through buying momentum over the next two sessions, keeping market sentiment buoyant. On Thursday, however, the index encountered resistance at higher levels and started to retrace, with the corrective move extending into Friday. Despite this pullback, there was no significant weakness observed in the broader markets, indicating underlying strength. For the upcoming week, key support is placed around 24,650, while resistance is seen near 25,150. The overall view remains positive, with a buy-on-dips strategy favored as long as support levels hold.

BANKNIFTY

The index ended the week with a 0.35% loss, settling at 55,149. It began the week with a sharp gap-up on Monday, driven by positive sentiment following the government’s GST reduction announcement on Independence Day. However, after the initial spike, the index moved sideways for the next two sessions as buying momentum failed to sustain. On Thursday, it faced resistance at higher levels and began a retracement, which extended into Friday, leading to a weak close. Throughout the week, the index underperformed the Nifty, reflecting relative softness despite the positive trigger at the start. For the upcoming week, key support is placed around 54,500, while resistance is seen near 56,000, with a buy-on-dips approach preferred as long as support levels hold.

Best Performing Sector of the week

The Nifty Auto was best performing sector of this week

Major gainers include:-

Maruti: up by 10.92%

TVS Motors: up by 9.08%

Ashok Leyland: up by 7.58%

Heromotoco: up by 6.16%

Worst Performing Sector of the week

The Nifty CPSE was worst performing sector of this week

Major losers include:-

PFC: down by 4%

Coal India: down by 2.6%

Powergrid: down by 1.86%

REC: down by 1.56%

Important News:-

• The Dow Jones Industrial Average rose 846.24 points, or 1.89%, to 45,631.74, surpassing its most recent record close on December 4, 2024. The S&P 500 gained 96.74 points, or 1.52%, to 6,466.91 and the Nasdaq Composite gained 396.22 points, or 1.88%, to 21,496.54.

• Foreign Institutional Investors (FIIs) have continued their selling trend in August, offloading equities worth ₹25,564 crore, bringing the year's total to ₹1,57,440 crore. High valuations in India compared to other emerging markets and concerns over IT sector growth are key drivers. However, a potential rate cut by the Federal Reserve may ease the selling pressure.

• Rekha Jhunjhunwala sold her entire stake in the online gaming firm Nazara Technologies through a family entity in June 2025. Share saved ₹334 crore from the ‘timely exit’ before the stock crashed over 17.58% in the last five market sessions.

• Oil rose after Federal Reserve Chair Jerome Powell signaled openness to an interest rate cut in September, countering an increasingly bearish supply outlook.

• Adani Ports and SEZ Limited shares will be in focus on Monday as the company on Saturday, August 23, announced that it was building a logistics park in Kochi spanning 70 acres with an investment of over ₹600 crore.