Weekly Update-30 May 2025

NIFTY50

The index closed the week with a loss of 0.41%, settling at 24,751. The week began on a positive note with a gap-up opening and strong follow-through momentum on Monday, driven by broad-based buying across sectors. However, Tuesday witnessed a sharp correction from higher levels, indicating profit booking and cautious sentiment. As the week progressed, the index remained largely range-bound with heightened volatility, reflecting indecision among market participants amid mixed global cues. Key resistance for the coming week is seen around the 25,000 mark, while strong support is expected near the 24,500 zone. A breakout on either side could set the tone for the next directional move.

BANKNIFTY

The index closed the week with a gain of 0.63%, settling at 55,750. It began with a gap-up and strong momentum on Monday, followed by a sharp correction on Tuesday from higher levels. The remainder of the week was largely sideways with range-bound volatility. Notably, the index outperformed the broader market, with PSU Banks showing strong leadership over Private Banks. Overall sentiment remained positive, with buying interest seen on dips. Key resistance for the coming week is around 56,100, while support is seen near the 55,000 mark.

Best Performing Sector of the week

The Nifty PSU Bank was best performing sector of this week

Major gainers include:-

Canara Bank: up by 7.04%

UCO Bank: up by 6.48%

Punjab National Bank: up by 5.42%

Indian Overseas Bank: up by 5.23%

Worst Performing Sector of the week

The Nifty FMCG was worst performing sector of this week

Major losers include:-

ITC: down by 4.18%

United Spirits: down by 3.72%

Tata consumer: down by 3.02%

UBL: down by 2.36%

Important News:-

• Samvardhana Motherson share price gained more than 2% in the morning trade of Friday, post Q4 results and dividend announcement. Analysts indicate that strong operational efficiency and strategic investments will support future growth.

• Companies including Larsen & Toubro, Tata Motors, Tata Steel, Nuvama Wealth Management, and Tata Consultancy Services are among others which will trade ex-dividend in the upcoming week starting Monday, 2 June 2025.

• Technically, the Nifty 50's inability to sustain levels above 25,200 suggests that the index is undergoing a consolidation phase, with immediate support around 24,500, near its short-term moving average.

• The Indian bond market is showing signs of strength, driven by easing inflation and expectations of more interest rate cuts from the Reserve Bank of India (RBI), says a report by Jefferies.

• Germany's 10-year government bond yield was set for a 5-basis-point weekly drop, particularly after falling on Thursday on risks of extended policy and economic paralysis.