Stock Market Weekly Prediction: Nifty, Sensex May Hit Record Highs Diwali Week; Muhurat Trading 2025 on Oct 21

The Indian stock market enters the festive Diwali week with optimism after a strong close in the previous session. From October 20 to 24, 2025, all eyes will be on key earnings, global cues, FII activity and the ongoing rally in banking and FMCG stocks as markets gear up for potentially historic levels.

Stock Market Weekly Prediction For 20 To 24 October 2025: How Market Will Trade This Diwali?

According to Bajaj Broking, "Indian benchmark indices ended the session on a strong note, supported by short covering from FII participants and a steady inflow of funds. The sentiment remained upbeat as Bank Nifty achieved a new milestone, driven by robust buying interest in leading banking stocks."

At the close of the previous session, the Sensex gained 484.53 points (0.58%) to settle at 83,952.19, while the Nifty advanced 124.55 points (0.49%) to close at 25,709.85.

Weekly Nifty Prediction (Oct 20-24): Diwali Week Projections

As per Bajaj Brokerage's Nifty outlook, the weekly chart has formed a sizable bull candle with a higher high and higher low, "signaling continuation of the up move." The index also broke out above a falling supply line joining the major highs of September 2024 and June 2025, showing sustained strength.

Last week, Nifty also witnessed a breakout above a three-month symmetrical triangle consolidation pattern-confirming bullish sentiment.

"Any dips during the upcoming truncated week should be viewed as buying opportunities. We expect the index to head towards 25,900 and then towards 26,200 levels in the coming weeks," Bajaj Brokerage added.

These targets represent the 123.6% and 138.2% external retracement of the three-month corrective decline (from 25,669 to 24,338). The recent breakout area of 25,350-25,450 is expected to act as a key support zone for the week.

Bank Nifty Outlook This Week

Bank Nifty has emerged as the strongest performer, forming a bullish candle with a higher high and higher low. "The index in the process rallied to a fresh all-time high," Bajaj Broking noted.

"Going ahead, bias remains positive and the index is expected to head towards 58,500 and 59,000 levels in the coming sessions."

Immediate support for Bank Nifty is seen at 57,000-56,700, which is also the recent low and gap area.

5 Key Triggers To Drive Stock Market This Week

US Tariffs and Trade Talks
Developments around US tariffs on China and any signals of a possible India-US trade deal will be closely tracked. Positive news may push markets toward new highs.

Q2 Earnings Season
The market will react to Q2 results from heavyweights including Reliance Industries, HDFC Bank, ICICI Bank. Meanwhile other key players like HUL, SBI Life, Dr. Reddy's and SBI Cards' earnings announcement will be critical for short-term direction.

FII Trends
Foreign investors have turned net buyers in the last three sessions. Sustained FII buying will provide crucial support during the Diwali week.

Rupee Movement
The rupee ended 6 paise lower at Rs 88.02/USD on Friday but rose around 1% for the week-its best in over five months. Rupee stability will influence market flows.

US CPI & Fed Rate Decision
The US CPI data for September is due Friday. Despite the federal shutdown starting October 1, reports confirm the government will release CPI figures to allow Social Security to process benefits. These numbers are likely to shape expectations for a 25 basis point rate cut by the US Fed on October 28-29.

When is Stock Market Holiday For Diwali? 20 or 21 October? Check Diwali Holiday

The Indian stock market will remain open on Monday, October 20, unlike previous years when exchanges were closed a day before Diwali.

According to updates from BSE and NSE, the Muhurat Trading session-a symbolic and auspicious hour of trading held annually on Diwali-will take place on Tuesday, October 21, 2025, from 1:45 PM to 2:45 PM. This marks a notable change, as the session is traditionally held in the evening.

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