loader2
Login Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

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

+91

BLOG

Market sentiment turns upbeat; All Time High in sight!

ICICIdirect Research 24 Oct 2025 DISCLAIMER

Equity benchmark extended gains over 4th consecutive week amid optimism over possible India-US trade deal. Nifty gained ~0.6% in the truncated week while the broader market performed in tandem with the benchmark by gaining 0.8%. The revived traction in Financials and IT boosted the market sentiment

Key Highlight: 

Nifty reclaimed 26000 mark after twelve months of hiatus wherein in absorbed host of negative news around geopolitical issues, Tariff uncertainties, FII's sell-off, indicating revival in market sentiment amid trade deal development

What to expect:

  • Past four months higher base formation has set the stage for Nifty to challenge the All Time high of ~26300 in the coming month.
  • Key point to highlight is that, Nifty has rallied >1500 points in last four weeks that hauled index in overbought territory, indicating possibility of temporary breather cannot be ruled out. However, such a breather should not be construed as negative, instead use dips to accumulate quality stocks with strong earnings as strong support is placed at 25400

 

Our positive bias is based on following observations:

 

Action in Bank Nifty, IT, Oil & Gas: The Breakout from 3 months consolidation helped Bank Nifty to clock a fresh All Time High, highlighting structural improvement. While optimism around earning boosted sentiment in IT, Oil & Gas stocks. Together, these indices carry 55% weightage of Nifty

Market breadth: The current up move is backed by the improvement in market breadth as currently the ratio chart of stocks hitting new 52 weeks high vs new 52 weeks low (Nifty 500 Universe) continues to inch upward, highlighting strengthening of rally.

Broader Structure: The breakout from past four months consolidation (25700-24350) backed by traction in index heavy weights, highlighting structural improvement that would eventually pave the way for next leg of rally towards implicated target 27000 in the coming quarter

Key Monitorable:

  1. Outcome of India-US tariff negotiations
  2. Gold: Gold has taken a breather after approaching overbought conditions after > 60% rally seen in this year. Going ahead, we expect gold to undergo healthy consolidation in $4400-$3900 range
  3. US Fed meet
  4. Progression of Q2FY26 earning season
  5. Continuation of buying spree from FII's

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere