loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Improving sentiments to drive Nifty towards 25800 and eventually new high

ICICIdirect Research 19 Sep 2025 DISCLAIMER

Equity benchmark endured its winning streak over third consecutive week underpinned by strong global cues tracking Fed rate cut. Nifty settled the week at ~ 25300, up 0.8%. Broader market outperformed as Midcap gained 1.5% while smallcap rose 2.8%. Sectorally, PSU Banks, Realty, Defence remained in limelight.

What to expect:
Over past three weeks index has rallied >1000 points without any breather. Thereby, possibility of temporary breather at higher level cannot be ruled out which will make market healthy and pave the way towards 25800 in coming weeks wherein strong support is placed at 24700
We reiterate our positive stance and expect Nifty to head towards 25800 in upcoming monthly expiry week.
The across sector participation on the back of GST reforms helped to improve market breadth while maintaining higher peak and trough intact, highlighting inherent strength

Key drivers:
Index heavy weight: Revived traction in BFSI, IT, Auto (cumulative >50% weightage) would drive Nifty higher
After announcement of growth friendly GST reforms now all eyes are on the progression of tariff negations. Any announcement on scrapping of additional 25% tariff or lowering reciprocal tariff rates would fuel the momentum in the market. Consequently, focus will shift towards export-oriented Textile, Capital Goods and Pharma stocks
In a bull market scenario, average decline in Midcap and Smallcap have been 27% and 29%, respectively. Buying in such scenario has been fruitful with >50% returns in subsequent 9-12 months. In the month of April, after 23% and 27% correction in Midcap and smallcap, indices witnessed a sharp rebound and made a higher base in the vicinity of 52-week EMA. Currently, Midcap index is just shying away 3% from its All Time High while small cap index is 6% away from All Time High. 
Market breadth: Constant improvement in market breadth highlights inherent strength. Currently, 64% stocks are trading above 50 days SMA while 60% stocks are trading above 200 days SMA compared to one month back reading of 41% and 58%, respectively

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere