Indian stock market: Indian benchmarks posted solid gains on Friday, January 2, supported by broad-based buying across sectors and rising optimism ahead of the Q3 earnings season.
The Sensex advanced 573 points, or 0.67%, to close at 85,762.01. The Nifty 50 scaled a fresh all-time intraday high of 26,340 before trimming gains to end at a record closing level of 26,328.55, up 182 points, or 0.70%. Meanwhile, the BSE Midcap index gained 0.97%, and the Smallcap index rose 0.79%.
Market Outlook by Dharmesh Shah
• Equity benchmark kick-started the new year on a strong footing as Nifty regained the momentum and scaled back to life highs. Nifty gained more than 1% for the week to settle at 26328. Sectorally, Auto, Metal, PSU Banks remained in limelight while FMCG, IT remained laggards. The weekly price action formed a bull candle with lower shadow, indicating buying demand at elevated support base
• Amidst global volatility supportive efforts from two months rising trend line provided path for Nifty to scale back to its All-Time Highs of 26300. The breakout from five weeks consolidation (26300-25700) confirms resumption of uptrend that makes us reiterate our positive stance and expect Nifty to extend the rally towards 26800 in the month of January.
• In the process, bouts of volatility owing to global development and onset of earning season would present incremental buying opportunity wherein strong support is placed at 25700.
• Bank Nifty: Four weeks decline entirely retraced back in just a single week, propelling index to clock a fresh All Time High
• The ratio chart of MSCI India vs MSCI World has once again bounced from cyclical lows which has been held since CY21, indicating relative outperformance against global equities going ahead
• Broadening of rally: The rally has broadened significantly over past two weeks with 50% of the stocks are trading above their 50 days SMA compared to 27% 2 weeks ago
• Sectors in focus: Banking continues to lead supported by Auto and Metal while revived traction in beaten down sectors like Power, PSU, Realty augurs well for broadening of rally going ahead.
c) Quarterly Business updates
d) Brent Crude Oil has remained soft and trading near lower band of consolidation. Breakdown below 58 would result into extended correction.
Stocks To Buy This Week – Dharmesh Shah
Dharmesh Shah of ICICI Securities recommends buying Larsen & Toubro and Union Bank.
Larsen & Toubro: Buy at ₹4000-4165 | Target price: ₹4520 | Stop Loss: ₹3798.
Union Bank: Buy at ₹152-157 | Target price: ₹175 | Stop Loss: ₹144.
Disclaimer: The Research Analyst or his relatives or I-Sec do not have actual/beneficial ownership of 1% or more securities of the subject company, at the end of 5/11/2025 or have no other financial interest and do not have any material conflict of interest.
The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
