Weekly Update- 28 August 2025

NIFTY50

The index ended the week with a 1.78% decline, settling at 24,427. The week opened on a strong note as the index rebounded from support levels on Monday, raising hopes of continued momentum. However, as the week progressed, sustained selling pressure emerged across the board, leading to broad-based weakness where almost all major sectors gave up the gains of the previous week. This persistent profit booking and lack of follow-through buying shifted the sentiment towards caution. Going forward, the immediate support zone is seen around 24,150, which is likely to act as a critical level for traders. On the upside, resistance is placed near 24,750. From a strategy standpoint, the outlook remains constructive, with a preference to buy on dips closer to support levels, where the risk-reward setup turns favorable for fresh long positions.

BANKNIFTY

The index ended the week with a sharp 2.71% decline, settling at 53,656. The week started on a flat note with some consolidation near support levels, but as it progressed, persistent selling pressure gripped the market, particularly dragging PSU and Private Banks, which surrendered their previous week’s gains. This consistent weakness led to significant underperformance against the Nifty, highlighting sector-specific pressure in the banking space. Going forward, key support is placed around 53,000, while resistance remains near 55,000. The broader view continues to favor a buy-on-dips approach with minimal risk if the index approaches the support zone, as the risk-reward profile could turn attractive for initiating fresh long positions.

Worst Performing Sector of the week

The Nifty Realty was worst performing sector of this week

Major losers include:-

Lodha: down by 5.45%

Godrej Properties: down by 5.12%

Prestige Estate: down by 4.51%

Brigade: down by 4.09%

Important News:-

• The combined market valuation of eight of the top-10 most valued firms eroded by Rs 2,24,630.45 crore last week, with Reliance Industries and HDFC Bank taking the biggest hit, in-line with a bearish trend in equities.

• Ola Electric’s shares surged 14% after securing Production Linked Incentive (PLI) certification for its Gen 3 scooters, boosting margins and profitability prospects. Despite this, market share has slipped amid stiff competition and supply issues. Analysts note healthy technical signals but caution on short-term pullbacks. Ola aims for growth with new models and targets EBITDA breakeven by Q2 FY26.

• Indian benchmark indices closed the holiday-shortened week 1.8% lower amid US tariff worries. On Friday, Nifty declined 0.3%, ending at 24,426.85. The new derivatives series began on a muted note, with the market in a corrective phase and Nifty approaching a key support zone of 24,250–24,350, while banking stocks near critical technical support.

• BSE Index Services has introduced the BSE Capital Markets Index to benchmark companies in India’s capital markets sector, aiding investors, fund managers, and institutions with transparency, sector tracking, and passive product creation.

• India-China-Russia: Beginning today, Sunday, August 31, Tianjin, the port city of China, will welcome 20 world leaders, including Prime Minister Narendra Modi and Russia’s Vladimir Putin, for the 25th Shanghai Cooperation Organisation (SCO) Summit, held under the theme “Promoting the Shanghai Spirit: SCO in Action.”