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Multi sector participation to drive Nifty towards 25800

ICICIdirect Research 10 Oct 2025 DISCLAIMER

Equity benchmarks wrapped up the volatile week on a positive a trajectory, aided by encouraging quarterly business update. The Nifty gained 1.5% to settle the week at 25300. Beaten down IT sector staged a strong rebound by gaining 5% while financials endured its upward momentum.
What to expect:
We expect Nifty to gradually head towards short term milestone of 25800 with elevated support at 24700. Bouts of volatility amid global development as well as ongoing earning season would offer incremental buying opportunity. Our positive bias is further validated by following observations:
Bank Nifty, the torch bearer: The faster pace of retracement in Bank Nifty helped index to resolve out of 2 months high. The banking internals like private banks, PSU Banks, NBFC’s are showing structural improvement that makes us believe, Bank Nifty is gearing up to challenge it’s All Time high of 57600 in coming months
Bulls tightening its grip of 2/3 weightage of Nifty: The index heavy weight Banking index along with Oil & Gas have surpassed their 2 months high. Following the auto index, Metal has clocked a fresh All-time high. Meanwhile, Capital goods, Consumption, pharma, Power indices are undergoing higher base formation
 
Broader Structure: Index staged a strong rebound after approaching maturity of price and time wise correction. Further, seasonality favours bulls in October month that makes us reiterate our stance of Nifty challenging All Time high of 26300 by the year end
 
Key Monitorable:

Beginning of Q2FY26 earning season
Development on tariff negotiations
AI related rally in global stocks
Gold: With > 50% up move in this year the monthly RSI has surpassed 90 levels for the first time since 1980. Such overbought conditions suggest possibility of short term breather wherein Gold can consolidate in $4100-$3700 range

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