Breakout above 25,300 could take Nifty to 25,750, stick to stock specific action, say experts

Sensex, Nifty traded lower due to profit-taking in IT shares and Bharti Airtel day after a sharp rally.

The benchmark equity indices closed lower on Friday following profit-taking by investors, a day after the markets rallied sharply. However, experts remain optimistic and say a breakout above 25,300 on the Nifty could push the index towards 25,750 in the coming weeks.

The Sensex declined 200.15 points or 0.24 percent to settle at 82,330.59. During the session, it fell as much as 383.79 points to touch an intraday low of 82,146.95. The NSE Nifty slipped 42.30 points or 0.17 percent to end at 25,019.80.

Market analysts said the weakness was largely due to selective profit booking in IT, banking and metal counters. Despite the correction, the broader market showed resilience, with midcap and smallcap indices ending in the green.

According to Bajaj Broking Research, the Nifty formed a bullish candle on the weekly chart, marking a higher high and higher low pattern—a sign of continuation of the uptrend. Importantly, the index closed firmly above its previous high of December 2024 at 24,857.

"Going ahead, we expect Nifty to maintain a positive bias and head towards the 25,200–25,300 zone, which is the target of the recent breakout. While some consolidation is likely at these levels, a decisive move above 25,300 can open the gates for 25,750 in the near term," the brokerage noted.

On Bank Nifty, the report highlighted that the index formed a narrow bull candle on the daily chart, which stayed within the previous session's range, indicating consolidation with a positive undertone. "Buying interest was seen near the support zone of 54,000–54,500. The index is likely to head towards 56,400, which corresponds to the 123.6% external retracement of the recent corrective move," Bajaj Broking added.

Commenting on the overall trend, Prashanth Tapse, Senior Vice President (Research) at Mehta Equities, said, "Markets languished in negative territory throughout the session due to selective profit-taking. However, the strength in broader indices and most sectoral indices ending positive reflects a cautious optimism among investors despite global uncertainties."

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