Stock Markets Rebound to End Week on Positive Note; Nifty Eyes 25,000 Mark
By S JHA
MUMBAI, May 23, 2025 – Indian equity markets witnessed a volatile week, marked by early declines followed by a sharp recovery in the final session. The benchmark Nifty 50 ended the week just below the 24,850 mark, trimming losses to close with a mild weekly dip of 0.67%.
Friday’s strong rebound – adding 243 points – lifted market sentiment, with a bullish lower wick on the weekly chart signaling robust buying interest at lower levels.
According to Angel Broking’s weekly analysis, the market demonstrated a mixed bias. Initial sessions saw profit booking erase most of the previous week’s gains. “The late-week rally supported by heavyweight indices like Bank Nifty and FinNifty – both now less than 2% away from their all-time highs – helped contain the damage,” said the brokerage firm.
StockEdge analysts also noted the Nifty’s resilient bounce back above 24,800, stating the index is now well-positioned to test the psychological resistance of 25,000. “The 20-day EMA at 24,500 remains a key support zone, with a double-bottom pattern near this level adding technical strength,” said StockEdge in a post-market note.
Sectoral & Stock Highlights:
- Top Weekly Performers: Realty, PSU, CPSE, Metal, and Banks outperformed the benchmark, with sector indices showing renewed momentum.
- Underperformers: Auto, IT, and Tourism sectors lagged behind.
- Capital Markets Surge: The Nifty Capital Markets Index led sectoral gains on Friday, surging 2.2% in a single session.
- Stock Movers: Eternal Ltd. emerged as the top Nifty 50 gainer with a 3.7% rise, while Sun Pharma was the biggest loser, slipping 2.0%.
Technical Snapshot:
- Support: 24,500 (20 EMA)
- Resistance: 25,000 (psychological barrier)
- RSI: At 59, indicating continued bullish momentum
- Over 80% of Nifty 50 and Nifty 500 stocks are now trading above their 20- and 50-day EMAs, further supporting the “buy on dips, sell on rise” approach.
Notable Breakouts:
- HDFC Life: Hit a fresh all-time high with 3.25% gains, confirming a breakout on both daily and weekly charts.
- BHEL: Posted its strongest close in seven months; RSI at 68 suggests further upside.
- SBI Life: Closed at its highest level since October, riding bullish momentum above key moving averages.
- Alembic Pharma: Jumped 6% after receiving USFDA approval for Amlodipine Tablets, targeting a $1.8 billion market.
- Tata Steel: Gained 3.4% this week after last week’s 10% surge, supported by a breakout on the weekly chart and a ₹27,000 crore Kalinganagar expansion plan.
Outlook:
With the market firmly bouncing off crucial support levels and heavyweight indices showing renewed strength, the short-term outlook remains cautiously optimistic. Analysts suggest that a sustained move above the 25,000 mark could resume the broader uptrend. Until then, traders are advised to maintain a range-bound strategy, capitalizing on sector-specific opportunities and thematic plays.
(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)
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