Buy the Dips, Stay Selective 📈

It was another positive week for the Indian equities as Benchmark indices witnessed a good up-move after consolidation in the preceding week.

Most of the broader market indices also continued the positive momentum. The Nifty ended the week with 1.2 percent gains, while the Sensex was up by 1300 points.

Even Bank Nifty continued its upside move and closed with marginal gains of 0.83 percent. Bank Nifty has recently touched the all time high levels and consolidation was expected.

As for the broader markets, some profit booking resulted in midcap index closing with marginal gains of 0.25 percent. Even small cap index closed of 1.09 percent.

Market Performance

Here's how the major indices fared:

Index	April 25, 2025	May 2, 2025	% Change
Nifty	24,039.4	24,346.7	1.28
Bank Nifty	54,664.1	55,115.4	0.83
Midcap Nifty	53,570.2	53,705.1	0.25

Sector Performance

Among sectors, the Defense index outperformed, rallying over 6 percent, whereas the Media index shed 1.70 percent.

During the week ending May 2, 2025, the Indian stock market experienced notable movements and impacts, both indices Nifty 50 and Sensex showed positive performance.

The IT and Digital sectors were the top gainers, driven by value buying by FII at lower levels.

The stock markets saw significant gains during the week ending May 2, 2025, with Nifty Defense, Oil and Gas , Realty and Auto leading the sectors driven by declining crude oil price, lower interest rates, strong Q4 earnings, and geopolitical tensions.

Indices	Weekly Change (%)
Nifty Realty	2.58
Nifty Auto	1.33
Nifty IT	0.93
Nifty Bank	0.83
Nifty Pharma	0.67
Nifty Energy	0.54
Nifty Financial Services	0.44
Nifty PSU Bank	0.29
Nifty Select Midcap	0.05
Nifty FMCG	-0.50
Nifty Metal	-0.60
Nifty Media	-1.71

Weekly Top Gainers (Nifty 500)

Company	Weekly Gain (%)
Sonata Software	25.4
GRSE	16.5
Vishal Megamart	13.7
Mazagoan Docks	13.4
Tube Investments	13.2

Weekly Top Losers (Nifty 500)

Company	Weekly Loss (%)
Tejas Networks	-17.8
SW Solar	-16.3
Godrej Agrovet	-13.4
Five-Star Business	-12.4
PRAJ Industries	-10.7

This week in the Nifty 500, Sonata Software led gains with a 25.38% rise, followed by GRSE and Vishal Megamart, each up over 13%.

Meanwhile, Tejas Networks fell 17.78%, with SW Solar and Godrej Agrovet also dropping sharply.

The mixed performance reflects a volatile market driven by stock-specific factors rather than broad trends.

Liquidity Conditions

FPIs were net buyers, injecting around USD 2,040 million into Indian equities.

This influx was driven by strong corporate earnings and optimism around India's economic prospects amidst despite the market correction triggered by geopolitical tensions following the Pahalgam attack.

However it seems the actions and reaction of such attack is already discounted and it would be now news and earnings driven market.

Rather with FIIs as well as DIIs turning net buyers there seems a good strength in the equity markets.

India Equity - Institutional Funds Flow (in Rs. crore)

Date	FII	FII (Futures)	DII
April 28, 2025	2,474	7,454	2,818
April 29, 2025	2,386	693	1,369
April 30, 2025	51	4,402	1,792
May 02, 2025	2,770	407	3,290
Total	7,681	12,956	9,269

Earnings Spark Global Market Rally

Global stock markets staged a spirited rally this week, fuelled by upbeat corporate earnings, easing U.S.-China tariff tensions, and shifting macroeconomic winds.

In the U.S., all major indices soared, with the Nasdaq 100 leading the charge at 2.99%, powered by robust tech earnings and optimism over softened tariff rhetoric.

The S&P 500 and Dow Jones also posted solid gains of 2.18% and 1.64% respectively, as investors cheered better-than-expected results from AI giants like Microsoft and Meta.

European and Asian markets echoed the positive sentiment: the FTSE 100 climbed 1.07%, and Japan’s Nikkei 225 surged 4.03% on strong performance. While South Korea’s Kospi advanced 1.25%, China’s Hang Seng (-0.23%) and Shanghai (-0.45%) indices slipped, reflecting ongoing caution amid mixed economic signals.

On the commodities front, crude oil prices plunged to their lowest since April 2021-Brent crude settled near US$ 61.83 per barrel-amid trade policy uncertainty and swelling supply.

Gold dropped 2% as a resilient U.S. dollar weighed on prices, with the spot rate hovering around Rs. 92,956 per 10 grams. Meanwhile, the rupee strengthened to 85.56 against the dollar, buoyed by RBI intervention, and India’s 10-year benchmark G-Sec yield closed at 6.35%.

This week’s market action underscores a landscape where earnings momentum and policy shifts are driving risk appetite, even as commodity markets and select Asian indices signal lingering caution.

Technical Perspective

Nifty

Nifty remained strong above its 200-day SMA this week, forming a bullish candle and continuing its uptrend on daily charts. The key support zone is at 24,200/79,900-holding above this level keeps the momentum positive, with upside targets at 24,600–24,800/81,000–81,700. However, if Nifty slips below 24,200/79,900, the trend could weaken, increasing the risk of a drop towards 24,050/79,500 or even 23,900/79,000.

Bank Nifty

Bank Nifty is showing a lower top pattern, signaling some caution. A breakout above 55,800 could lead to further gains up to 56,100–56,500. On the downside, a break below 54,700 may accelerate selling, dragging the index towards 54,000–53,700. Traders should monitor these key levels and manage positions with appropriate stop-losses.

Buy the Dips, Stay Selective

We remain optimistic about Indian equities maintaining momentum, supported by strong technical and positive global cues. Nifty’s uptrend and recent consolidation provide a solid base, while Bank Nifty’s breakout potential adds upside.

Midcap and small caps may see volatility, but significant declines are unlikely. Dips should be seen as buying opportunities. A cautious, wait-and-watch approach with disciplined risk management is recommended to capitalise on selective gains.cautious