Weekly Market Recap: NIFTY & Sector Highlights

The Indian equity market ended the first week of May on a broadly positive note, with both benchmark indices—NIFTY50 and BANKNIFTY—registering decent gains. However, profit booking and resistance at higher levels capped further upside towards the end of the week. Investors remained cautious ahead of corporate earnings, global cues, and key domestic macroeconomic indicators.

NIFTY50 Weekly Performance

NIFTY50 gained 1.28% over the week and closed at 24,346.70. The rally on Monday gave the index strong upward momentum, driven by large-cap outperformance and upbeat global cues. The index maintained a sideways-to-positive bias through mid-week, supported by select IT and FMCG stocks.

However, Friday saw selling pressure as investors booked profits at higher levels. The index breached its intraday support and closed below the previous swing low. This move suggests caution ahead and the possibility of near-term consolidation.

Technical Outlook:

• Resistance: 24,800 (psychological barrier and technical resistance zone)
• Support: 23,800 (key demand zone and recent swing low)
• A close below 23,800 could open the doors for a deeper retracement toward 23,500–23,300 levels.

BANKNIFTY Weekly Performance

BANKNIFTY gained 0.83%, closing at 55,115.35. The financial index followed a similar path to the broader market, with strong momentum on Monday largely led by PSU Banks. The mid-week sessions saw modest gains amid a consolidation phase.

Despite a strong start on Friday, BANKNIFTY failed to sustain at higher levels, reflecting hesitation and profit booking from institutional investors. The divergence between PSU and Private Banks continued, with PSU names clearly outperforming.

Technical Outlook:

• Resistance: 56,200 (immediate breakout level)
• Support: 54,000 (crucial support from the last 3-week average close)
• Below 54,000, next support lies at 53,250. Sustained trades above 56,200 may take the index to 57,000+.

Sectoral Performance

Best Performing Sector: Nifty Realty

The Nifty Realty Index was the best performing sector of the week, with strong gains led by optimism over urban infrastructure spending, new launches, and robust quarterly numbers from key players.

Top Gainers:

• Prestige Estates: +8.02% – The company reported better-than-expected pre-sales numbers for Q4, supported by strong demand in Southern markets.
• Godrej Properties: +7.86% – Continued expansion in key metros and aggressive project launches drove investor interest.
• DLF: +5.13% – Positive sentiment ahead of Q4 results and strong pre-leasing data supported the rally.
• Sobha: +5.08% – Operational efficiency and improved revenue guidance contributed to the gains.

The broader outlook for the sector remains bullish, supported by favorable policy frameworks, demand resurgence post-pandemic, and low inventory levels in key metros.

Worst Performing Sector: Nifty Media

On the other hand, the Nifty Media Index lagged the market, ending the week in negative territory. Poor quarterly results, weak advertising growth, and regulatory overhang weighed on sentiment.

Top Losers:

• Dish TV: -6.99% – Concerns over subscriber losses and muted guidance triggered a sell-off.
• PVR Inox: -2.49% – Despite reopening and new content releases, lower footfalls and high operational costs dragged the stock.
• Saregama India: -2.42% – Revenue pressures and weak licensing deals impacted sentiment.
• Zee Entertainment: -1.89% – Ongoing legal disputes and merger-related uncertainty continued to dampen investor confidence.

Stock Highlights: Major Earnings Announcements

Avenue Supermarts (DMart) – Flat YoY Profit

Q4 Net Profit: ₹551 crore (vs ₹553 crore YoY)

Despite muted net profit growth, DMart’s revenue rose steadily due to robust footfalls and expansion into Tier 2/3 cities. However, higher input costs and aggressive store expansion offset operating margins.

State Bank of India (SBI) – Profit Drops 10%

Q4 Net Profit: ₹18,642.59 crore (vs ₹20,698.35 crore YoY)
Net Interest Income: ₹42,774 crore

The drop in net profit came from higher provisioning and margin compression. However, the bank maintained strong asset quality, and management reiterated a positive credit growth outlook for FY26.

Indian Bank – Profit Jumps 32%

Q4 Net Profit: ₹2,956 crore (vs ₹2,247 crore YoY)

The public sector lender showed strong YoY growth driven by improved net interest margins and reduced provisioning. Loan disbursals in MSME and retail segments were primary contributors to the profit surge.

Kotak Mahindra Bank – Profit Falls 14%

Q4 Net Profit: ₹3,552 crore (vs ₹4,133 crore YoY)

Kotak’s underperformance stemmed from increased provisioning for non-performing assets (NPAs). The bank also saw pressure on its net interest margins amid rising competition for deposits.

Global & Institutional Highlights

Warren Buffett’s Berkshire Hathaway Hits Record Cash Pile

Berkshire Hathaway’s Q1 2025 earnings revealed a record $347.7 billion cash pile. The company’s conservative positioning reflects Buffett’s caution amid tariff uncertainties and high equity valuations in U.S. and global markets.

This move signals a risk-off stance and has implications for global capital flows, including emerging markets like India. FII behavior could become cautious if macro uncertainty persists.

FII & DII Activity

• FIIs: Net buyers in the cash segment early in the week, but turned cautious post mid-week amid global volatility and weak U.S. data.
• DIIs: Provided consistent support, particularly in small-cap and mid-cap spaces. Mutual funds and insurance companies favored domestic-oriented sectors like real estate, auto, and capital goods.

Technical Trends & Options Data

NIFTY Open Interest (OI) Analysis

• Call Writing: Seen at 24,500 and 24,800 strikes – indicates strong overhead resistance.
• Put Writing: Notable at 24,000 and 23,800 – key support areas.

This range-bound OI data confirms the consolidation phase between 23,800–24,800 in the near term.

BANKNIFTY Open Interest

• Calls: Heavy buildup at 56,000 and 56,200
• Puts: Accumulation around 54,500 and 54,000

The data suggests a narrow range for the upcoming week, between 54,000–56,200.

Global Market Snapshot

• Dow Jones: +1.1% for the week – U.S. indices recovered as rate hike fears receded.
• Nasdaq: +2.3% – Tech stocks rallied on strong earnings from Apple and Microsoft.
• Brent Crude: Hovered around $85/barrel – Middle East tensions persist.
• Dollar Index (DXY): Slight decline to 104.6 – Weaker-than-expected U.S. jobs data.

IPO Corner

No major IPOs listed this week, but market chatter suggests multiple SME IPOs lined up in May. Investors are advised to focus on quality fundamentals, given the heightened volatility in small-cap space.

Key Events to Watch Next Week

1. RBI Policy Meet (Monetary Policy Committee Meeting) – Focus on commentary around inflation and liquidity.
2. U.S. CPI Data – Will set the tone for global risk assets.
3. India’s Industrial Production & Inflation Numbers – Key macro triggers for rate-sensitive sectors.
4. Corporate Earnings: ITC, Bharti Airtel, Tata Motors, and LIC expected to release Q4 results.

Weekly Wrap Summary

Investment Outlook

Despite weekly gains, the markets may enter a phase of consolidation in the near term. With resistance zones approaching for both NIFTY50 and BANKNIFTY, traders should remain cautious at higher levels. Earnings season and RBI commentary will play a pivotal role in setting the tone for May.

Investment Themes to Watch:

• PSU Banks and Capital Goods remain structurally strong.
• Selective exposure to Realty and FMCG could offer momentum trades.
• Avoid chasing underperformers in Media and NBFCs without confirmation.

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