Nifty Market Outlook: Will Bulls Break Past 25,000 This Week?

Intro:

Nifty Market Outlook: After last week’s record-climbing spree, the Indian market hit the brakes on Monday. The Nifty 50 slipped below the 25,000 mark, closing at 24,945 with a modest 0.30% dip—signaling consolidation, not collapse.

While the Sensex shed 271 points, the Nifty Bank stood firm with a green finish, and PSU banks stole the spotlight with a 1.46% sectoral gain. Bajaj Auto raced ahead as the top gainer, while Eternal struggled at the bottom of the leaderboard.

Investors seem to be catching their breath after last week’s run. Is this a pitstop before another breakout, or the start of a broader cooldown?

Let’s decode the technical levels, stock movers, and what lies ahead in this week’s trading setup.

Nifty Market Outlook – Will 25,000 Hold or Fold?

Closing Price: 24,945.45
Volume: 255.25 million

The Nifty 50 ended Monday’s session with a minor dip, slipping just below the crucial 25,000 mark. While the broader trend remains bullish, the index seems to be pausing for breath. Two consecutive small-bodied candles suggest indecision near resistance, a common sight after strong rallies.

🔍 Key Technical Levels to Watch

Level Type	Price Zone	Significance
Immediate Resistance	25,000 – 25,050	Round number + recent supply zone
Next Resistance	26,266	All-time high
Immediate Support	24,850	Recent breakout retest level
Major Support	24,000 – 23,940	Previous consolidation base
Strong Base Support	23,800	April’s accumulation support zone

Technical View

• Trend Setup: The uptrend is intact, but momentum is cooling as the index tests a key resistance.
• Price Action: Back-to-back near-doji candles hint at buyer fatigue, not bearish reversal—yet.
• Volume Insights: Slightly elevated volume could reflect mild distribution or profit booking near resistance.

Market Setup for Today

Scenario	Expectation	Trading Strategy
Bullish Breakout	Above 25,050 with volume	Target: 25,150–25,300; SL: 24,850
Bearish Pullback	Below 24,850	Target: 24,500–24,400; SL: 25,000
Sideways Action	Between 24,850–25,000	Avoid new trades; wait for breakout confirmation

Conclusion

Nifty Market Outlook remains bullish, but the index is flirting with resistance. A clear close above 25,000 could reignite momentum and pave the way toward 25,300+. However, failure to hold above 24,850 may result in a temporary pullback. Traders should stay alert, avoid overleveraging, and let price confirmation dictate the next move.

News & Impacted Stocks

Godrej Properties Eyes ₹40,000 Cr in FY26 Project Launches

Godrej Properties confirmed it acquired 14 land parcels in FY25, unlocking future project potential of around ₹26,000 crore. More importantly, CMD Pirojsha Godrej revealed plans to launch ₹40,000 crore worth of housing projects this fiscal—a significant jump from last year.

This aggressive expansion reflects the strong housing demand in urban India, especially for premium and mid-income segments.

Impacted Stock: Godrej Properties
The stock may stay in focus amid real estate optimism and strong forward visibility. Watch for new launches in key metro markets.

SEBI Investigates Insider Trading at IndusInd Bank

SEBI is reportedly investigating six officials at IndusInd Bank over suspected insider trading. The allegations revolve around stock options possibly being sold ahead of disclosures around accounting irregularities—a matter that also led to senior executive exits.

This probe includes trade timing analysis and internal reports on disclosure lapses.

Impacted Stock: IndusInd Bank
This could weigh on investor sentiment in the short term. Traders may expect volatility till clarity emerges.

Euler Motors Bags ₹638 Cr in Series D Round Led by Hero MotoCorp

EV maker Euler Motors has raised ₹638 crore in fresh funding led by Hero MotoCorp. The funds will support expansion of sales and service networks as well as new EV product development.

This comes at a time when the Indian commercial EV segment is heating up with rising demand from e-commerce and logistics players.

Impacted Stock: Hero MotoCorp
Hero’s increased backing of Euler strengthens its EV credentials and opens strategic growth levers in the three-wheeler cargo segment.

SAIL May Carve Out Dedicated Mining Vertical

The Steel Ministry is evaluating a proposal to create a separate mining vertical under SAIL (Steel Authority of India) to streamline operations and boost iron ore output. This structural move aims to give SAIL better flexibility and performance tracking of its mining assets.

Impacted Stock: SAIL
Investors may see this as a long-term positive if it leads to better operational efficiency and resource monetisation.

Govt Plans Gradual LIC Stake Sale via OFS

The government plans a gradual 6.5% divestment in LIC through the Offer For Sale (OFS) route. Instead of one big block, it will sell small tranches to let retail investors participate more regularly.

This could also help improve LIC’s float and bring more transparency in pricing.

Impacted Stock: LIC
Could bring short-term supply pressure, but also improve liquidity and retail participation. Long-term investors may watch for valuation resets.

Coal India’s Subsidiaries Heading for IPO

Coal India is prepping to file DRHPs for its subsidiaries BCCL and CMPDI. The move is part of a broader plan to unlock value and list high-potential mining and consultancy arms.

Both companies are significant in India’s mining value chain and could attract institutional interest.

Impacted Stock: Coal India
This adds to CIL’s monetisation drive and may unlock hidden value. Investors can expect IPO-linked sentiment boosts.

Stock on Technical Radar: Indraprastha Gas Ltd (IGL)

CMP: ₹211.55

After months of consolidation, IGL has finally broken out above the ₹210 resistance zone—a level that had capped the stock since February. The breakout is supported by consistent volume, signaling the return of buying interest and a potential trend shift.

The structure now aligns with a higher-high, higher-low pattern, a classic sign of bullish trend formation. Unless the stock breaks below ₹204, the bulls have the upper hand.

What to Watch This Week:

• Immediate Target: ₹218 – Minor supply expected
• Swing Target: ₹229 – Gap area from the October 2024 breakdown
• Support Zone: ₹208–₹210 – Retest zone for fresh entry
• Stop Loss: ₹204 (Daily Close Basis)

Strategy:

If IGL dips back toward ₹208–210 and holds, that’s a low-risk entry zone for swing traders. For aggressive bulls, holding current levels with a ₹204 stop could ride the trend toward ₹229.

Outlook: With improving momentum and no heavy resistance till ₹218, IGL looks ready for a sharp move if follow-through continues.

Small Cap of the Day: KNR Constructions Ltd (₹238)

High-Margin Infra Specialist That Nobody’s Watching… Yet

When we think of infra stocks, the usual suspects come to mind — high debt, slow billing cycles, and low margins. But KNR Constructions breaks the stereotype.

Based out of Hyderabad, KNR Constructions is one of India’s most efficient engineering, procurement and construction (EPC) firms — delivering projects across highways, flyovers, bridges, irrigation, and urban water infrastructure. What makes KNR stand out? It builds faster, books better margins, and barely carries debt.

Here’s What Makes KNR Interesting Right Now

✅ Rock-Solid Margins
With an operating profit margin of 34.2%, KNR is leagues ahead of most infra peers. That’s not a typo — this EPC contractor runs more profitably than some FMCG companies. For context, many infra firms struggle to cross 15%.

✅ Debt-Light Balance Sheet
With a debt-to-equity ratio of just 0.34 and over ₹413 crore in cash, the company can bid aggressively for new projects without worrying about balance sheet pressure.

✅ Attractive Valuation
The stock is trading at just 5.5x earnings, compared to the industry average P/E of 20.7. Its intrinsic value? ₹573/share, more than 2x the CMP (₹238). Talk about deep value.

✅ Strong Return Ratios
ROCE is a healthy 25.7%, and ROE comes in at 23.7% — both signs of efficient capital use. Even over the past 5 years, KNR has maintained a 5-year average ROE of 18.7% — a rare feat for an infra firm.

✅ Earnings Growth With Visibility
With ₹5,192 crore in revenue and 32.8% EPS CAGR over 3 years, the company isn’t just growing — it’s compounding. And with solid order book visibility (though not disclosed in recent filings), it looks set to maintain momentum.

Quick Financial Snapshot

Metric	Value
Market Cap	₹6,701 Cr
P/E	5.55
OPM	34.2%
ROE / ROCE	23.7% / 25.7%
Cash on Books	₹413 Cr
EPS Growth (3Y CAGR)	32.8%
Intrinsic Value	₹573
Sales (FY24)	₹5,192 Cr
Debt-to-Equity	0.34

Final Thought

KNR Constructions is not just undervalued — it’s under-recognized. In a market hungry for stable, compounding smallcaps with government tailwinds, KNR is a smart infra bet hiding in plain sight. With rising highway spending and urban infra focus in FY26, this stock could quietly double before anyone notices.

📉 Still need a breakout? Maybe.
💰 Fundamentally ready? Absolutely.

Conclusion: Nifty Market Outlook

After a strong rally earlier this month, the market took a breather on Friday with Nifty ending slightly below the 25,000 mark. But make no mistake — the broader trend remains bullish. The Nifty Market Outlook still leans toward upside continuation, especially with strong sectoral rotation, upbeat earnings, and FII inflows keeping sentiment buoyant.

This past week, we saw PSU Banks and midcaps outperform, while IT cooled off. Stocks like Wipro showed early signs of trend reversal, IGL broke out of a 3-month range, and Sanghvi Movers and KNR Construction continued to attract swing traders. Meanwhile, Groww’s acquisition of Fisdom, JSW Infra’s bulk deal, and Bharat Electronics’ new orders signaled strong business momentum in the broader economy.

Globally, easing US inflation, steady Fed commentary, and resilient global indices offered support. Back home, gold prices spiked due to rupee weakness, while oil remained range-bound.

Technical Setup: Nifty has formed tight candles just under 25,000 — not a reversal, but a pause. As long as it holds 24,850, the breakout remains valid. A clean move above 25,050 could trigger a short-term sprint toward 25,300–25,600, while a break below 24,850 may invite a dip toward 24,400–24,200 — a healthy pullback zone.

So, whether you’re trading the indices, tracking news-led movers, or riding small-cap momentum — next week will be all about follow-through confirmation.

✅ Stay long with tight stop-losses
⚠️ Avoid chasing without dips
📉 Watch IT and FMCG for signs of sector rotation
📊 Respect price structure — the trend is your friend unless the chart says otherwise

💡 Ready to make smarter trades in this momentum market?
Use Angel One’s pro tools to track technical breakouts, sector flows, and FII action — all in one place.

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