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

Turning the tide: markets find their footing

ICICIdirect Research 22 Aug 2025 DISCLAIMER

Equity benchmark extended gains over second consecutive week fuelled by optimism over GST reforms, Russia - Ukraine ceasefire development and rating upgrade from S&P. Nifty gained 1% to settle the week at 24900. Nifty midcap and small cap relatively outperformed by gaining >2%, each led by auto, consumption and realty.
Key Highlight: The breakaway gap after six weeks decline clearly signifies change of guard as bulls take control, indicating resumption of uptrend.
What to expect: The follow through strength backed by improving market breadth makes us reiterate our positive stance and expect Nifty to head towards 25400 in coming weeks. However, in the upcoming truncated week we expect volatility to pick up tracking tariff development (27th August is the tariff deadline), monthly expiry and GDP numbers. Meanwhile, Fed chair Powell's commentary in Jackson Hole would have bearing on global markets.
Focus should be on accumulating quality stocks backed by strong earnings, especially those poised to benefit from next-generation GST reforms and upcoming festive season as we believe strong support threshold is at 24700-24500 zone.
Structure: Market appears to be absorbing a host of negative news around tariff as well as geopolitical issues coupled with FII’s sell-off wherein Nifty has managed to defend 24500 on a weekly closing basis (over past 3 months), highlighting strong & higher base formation that bodes well for next leg of up move.
Market breadth: The % of stocks above 50 days SMA has bounced to 40% from past two weeks reading of 25%. Historically, buying in such scenario has garnered decent returns in subsequent months 

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere