Where is the market headed?
The markets continue to behave unpredictably, showing no consistent trend. Over the last four trading sessions, we’ve seen a pattern of going down, then up, then down again, and now up once more. Essentially, the market has been moving sideways with no net gain or loss. In fact, if you look back over the last nine sessions, the market is still hovering around the same level it was at back then. Interestingly, this stability is not a negative outcome—especially considering the pressure from foreign institutional investor (FII) selling. The fact that the markets are holding up well despite this selling pressure is encouraging.
There’s been some concern over rising global bond yields, but the market seems to be absorbing that fear effectively. With over 90 percent of companies having declared their earnings, results have mostly come in line with expectations, perhaps slightly below in some cases. Despite a multitude of reasons for the market to dip, it has shown resilience and remained steady, which is a positive sign for investors.
Small caps are gaining momentum – are you ready to ride the wave?
While large caps have been in focus, history shows that mid and small caps dominate in strong uptrends.
ENTER MI20 – a powerful strategy that picks the top 20 mid and small cap stocks from a universe of 400. It adapts to shifting market leadership, helping you stay with strength.
For a LIMITED TIME ONLY, we’re offering an exclusive offer of a 25% discount on your annual subscription of MI20 !
Offer Code : UPTREND25
Validity : Till 25th May 2025, Sunday
Use the link below to get the auto applied discount on your purchase !
Market Overview
Today, the Nifty closed up by 1 percent, a move that comes despite heavy selling of ₹5,000 crores by FIIs just a day earlier. Positive earnings from companies like ITC helped propel this rally, with the Nifty Junior index also ending the day 0.57 percent higher.
Nifty Next 50
Nifty Mid and Small Cap
The broader market showed similar strength, with midcap and smallcap indices both climbing 0.59 percent. This upward momentum helped offset losses from earlier in the week, particularly Tuesday, making it a relatively stable week overall.
Bank Nifty
Bank Nifty also showed a solid performance with a gain of 0.83 percent.
GOLD
Meanwhile, gold remained flat, sitting at a critical trendline.
Advance Decline Ratio
Market breadth was stable throughout the session. The advance-decline ratio was balanced, with 331 stocks advancing and 168 declining among the top 500. Notably, the market surged in the first few minutes of trading and maintained that level for the rest of the day. This stability in the broader market shows strong underlying strength.
Heat Maps
Looking at specific stocks, ITC stood out with a 2.3 percent gain. Adani Enterprises also performed well. Gains were seen across IT companies, banks, and financial services, with Reliance also contributing positively.
In the Nifty Next 50 segment, there was some profit booking in stocks like HAL, Torrent Pharma, Jindal Steel, and Siemens. However, other names like Bajaj Holdings, Swiggy, BPCL, Naukri, and VBL posted gains, reflecting sporadic strength across various sectors.
Sectoral Overview
In terms of sectoral performance, capital markets led the pack with a 2 percent gain. BSE Limited was a highlight today, although it remains to be seen how the ongoing expiry debate between NSE and BSE will unfold. SEBI’s forthcoming report on this issue will be critical. BSE also went through a bonus event today, issuing two additional shares for every share held.
Other sectors that performed well included FMCG and consumption. Earlier in the week, these sectors were under pressure due to weak results, but after ITC’s strong performance, confidence has returned. The private banking space and financial services also moved up around 1 percent, while IT stocks gained nearly 0.95 percent.
Sector of the Day
Nifty Capital Market Index
The standout sector of the day was clearly capital markets, which have rebounded nicely from the 3000-level on the index to nearly 4200. Angel One led this rally with a 5.78 percent gain. Other names like BSE, 360 One WAM, and Anand Rathi Wealth also contributed to the momentum.
To sum it up, while the market didn’t make dramatic moves this week, its ability to hold ground in the face of negative cues is a sign of underlying strength. Sector rotation is keeping the market buoyant, with capital markets and banks taking the lead, and FMCG recovering lost ground. We’ll keep an eye on these levels as we head into next week.
WeekendInvesting launches – The Momentum Podcast
This episode of The Momentum Podcast unpacks 15 years of investing experience! We cover:
✅ Early investing mistakes and learnings
✅ Navigating market fluctuations (including the 2020 crash)
✅ The transition from direct stock picking to managed funds
✅ The role of momentum investing in long-term strategy
✅ Key takeaways for building a resilient investment portfolio.
Whether you’re new to investing or looking to refine your approach, this episode is packed with practical advice!
