Weekly Trend Report
- 27th Oct 2025
Week Gone By
Indian equity markets ended the week on a mixed note, as investors weighed corporate earnings with broader economic trends. Slower infrastructure growth and moderation in private sector activity reflected weaker energy output and cautious export, while strong performances by select companies led to sector-specific gains. Overall, steady corporate results supported markets, though mixed macroeconomic indicators kept sentiment cautious yet resilient. India’s HSBC Flash Composite PMI Output Index declined to 59.9 in October. The Services PMI Business Activity Index also eased to 58.8, while the Manufacturing PMI rose to a two-month high of 58.4. The Manufacturing Output Index increased, reaching 62.4. Globally, China’s economy expanded slightly above expectations in the third quarter of 2025, with official data showing a 4.8% year-on-year GDP growth in the three months to September 30. Meanwhile, China’s central bank kept its benchmark lending rates unchanged for the fifth consecutive month, in line with expectations. In Japan, the core inflation rate accelerated to 2.9% in September, with headline inflation also rising to 2.9%.
Week Ahead
Equity investors can expect a cautiously optimistic trading sentiment for the week of October 25-31, supported by strong domestic corporate earnings and generally positive global cues. The key domestic focus remains the robust Q2 results season, while optimism is further lifted by the White House confirming a meeting between the US and Chinese Presidents next week, a factor likely to ease geopolitical risk and boost market confidence. On the domestic front, India’s industrial production data for September will be released on Tuesday (28 October), followed by M3 Money Supply figures on Wednesday (29 October), and the government’s budget value for September on Friday (31 October). Globally, China will release year-to-date industrial profit and FDI data for the period ended September 30. In the US, key releases include the Dallas Fed Manufacturing Index (27 October), S&P/Case-Shiller Home Price Index (28 October), API Crude Oil Stock Change, and the Federal Reserve’s interest rate decision (29 October).
Technical Overview
- The primary bullish trend, confirmed by last week’s decisive breakout above 25,640, remains firmly intact on the weekly and daily charts.
- The index is currently undergoing a short-term, healthy pullback after hitting a high near 26,000. This “retest” of the breakout zone is a common and constructive price action, allowing the market to consolidate its gains.
- This week’s candle on the weekly chart is a Spinning Top or Doji, closing at 25,795.15. This signifies indecision and a pause in momentum, which is normal after a powerful breakout.
- The previous resistance zone of 25,500−25,630 has now become the critical, immediate support level. The bulls must defend this area to maintain the upward trajectory.
- Volume during this week’s pullback has been noticeably lower than the volume seen during last week’s breakout. This is a bullish sign, suggesting the decline is driven by profit-taking rather than aggressive, new selling pressure.
- The daily RSI has cooled off from overbought territory, which is healthy and builds energy for the next potential up-move. The weekly RSI remains in a strong bullish momentum zone.
- The MACD on the daily and weekly timeframes remains on a “buy” signal, confirming the primary trend is up. However, the 1-hour chart shows a bearish crossover, reflecting the current short-term correction.
- The daily and weekly charts’ Parabolic SAR dots are still positioned below the price, indicating the major uptrend is active. The 1-hour chart’s SAR has flipped above the price, confirming the short-term pullback.
Conclusion:
The Nifty 50’s primary trend is unequivocally bullish. The current weakness is a textbook low-volume pullback to retest the breakout level of 25,500−25,630. This zone is now the critical support to watch. As long as the index holds above this level, the bullish structure is secure, and this pause should be viewed as a consolidation before the next leg of the rally.
