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Nifty navigates volatility: Structural uptrend intact!

ICICIdirect Research 07 Nov 2025 DISCLAIMER

Equity benchmark continued with its downward trajectory tracking weak global cues amid concerns over AI sector valuations. Nifty lost 0.8% to settle the truncated week at ~ 25500. Small caps bore the brunt, plunging 1.5% for the week. Sectorally, PSU Banks continued its northbound journey while IT, Metal underperformed.

Key Highlight:

Past three weeks 800 points decline is more of a healthy retracement of October month's 1500 points rally. The slower pace of retracement reinforces the structural uptrend.

What to expect:

We expect index to consolidate in the broader range of 25800-25100 zone amid stock specific activity as we approach the fag end of the earning season. Further, Bihar election outcome would have bearing on market. Hence, focus should be on accumulating quality stock on dips backed by strong earnings as strong support is placed at 25100 zone.
Meanwhile, to pause the ongoing downward momentum, Nifty need to decisively close above 25800 marks.
In contrast with Q1FY26 earnings, the lack of disappointment on earning front has provided cushion to the market that would pave the way for next leg of up move 
Seasonality: Since 2000, November has given positive return with 66% strike rate wherein average returns have been >2%

Key Monitorable:

Bihar Election outcome
Development on India-US tariff negotiations

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