Mumbai, Oct 25 The holiday-truncated week saw festive-driven optimism and upbeat consumer sentiment as it welcomed the Samvat 2082. However, the momentum gradually lost its steam, as geopolitical tensions and profit-taking weighed on investors' confidence.
Record festive sales underscored India’s surge in consumer demand this season, powered by resilient household spending and GST-driven affordability.
PSU banking stocks led the rally, buoyed by news of potential consolidation and better-than-expected results.
According to Vinod Nair, Head of Research, Geojit Investments Ltd, the precious metals market faced extreme volatility, suffering its sharpest single day fall in over a decade, driven by profit booking and a strengthening US dollar.
Crude oil prices surged sharply following fresh sanctions from the US and EU on Russian oil majors, sparking heightened fears of tightening global supply and renewed inflation concerns.
Stock markets ended lower on Friday, breaking a six-day winning streak, as investor sentiment weakened amid weal global cues.
The Nifty index ended the week on a flat note, gaining 85 points after a strong upward move. On the weekly timeframe, the index corrected nearly 311 points from its high, making it a volatile session and suggesting a phase of consolidation after recent sharp gains.
Nifty witnessed temporary profit booking, slipping below the 25,800 mark and eventually closing at 25,795.15, indicating a pause in momentum as traders booked profits at higher levels.
“Currently, Nifty continues to trade above its 20-day, 50-day, and 200-day EMAs, highlighting a strong underlying bullish structure and sustained trend strength. On the weekly timeframe, the RSI stands at 61.60 and is trending sideways, indicating a neutral-to-positive bias with potential for renewed momentum once consolidation ends,” said Hardik Matalia, Derivative Analyst-Research at Choice Equity Broking Pvt Ltd.
Bank Nifty ended the week on a flat note, closing at 57,699, after hitting a new lifetime high amid a highly volatile trading week. The index displayed notable strength by surpassing its previous peak of 57,628, but subsequently witnessed a correction of nearly 870 points from the week’s high, indicating profit-taking at higher levels.
According to analysts, investors should remain watchful of developments in the India-US trade negotiations, as both sides edge closer to finalising a deal.
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