Buy or sell: The Nifty index ended the week at 24,823, aligning with the previously discussed support zone of 24,400-24,600. As anticipated, the index moved above this support zone, closing at 24,823 and approaching its resistance level of 24,900-25,200.
Over the week, the Nifty fluctuated between 24,400 and 24,800. The sustained close above 24,600 suggests that the bullish trend may continue, with potential targets at the resistance levels of 24,900 to 25,200 in the near future.
Weekly Trading Overview
The trading week started with a gap-up opening on Monday, where the index briefly tested the support level of 24,600 before rebounding and moving towards 24,900.
Throughout the week, the market experienced stock-specific upward movements, with the Nifty trading within the range of 24,500-24,900. For the upcoming week, key support levels are expected around 24,500-24,600, while resistance is anticipated near 25,200.
Bank Nifty Performance
Bank Nifty also saw a gap-up opening on Monday, demonstrating strength by holding above the 50,000 level and closing the week near the resistance level of 51,000.
This performance indicates potential strength in the financial sector. As long as support levels remain above 49,500, the bullish outlook for banking stocks persists, reflecting ongoing investor confidence. Immediate resistance for Bank Nifty is identified at 52,000, with further resistance at 53,500.
Conclusion
Both the Nifty and Bank Nifty indices have successfully closed above their respective monthly support zones despite initial market volatility, maintaining a generally bullish sentiment. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions.
Stocks to buy on Monday
Ganesh Dongre, Senior Manager – Technical Research at Anand Rathi recommends three stocks to buy on Monday, August 25.
Buy BEL at ₹303-308… Stoploss…290 Target…340
Buy NLC India at ₹270-275… Stoploss…252 Target…298
Buy RCF at ₹196-200… Stoploss…188 Target…220
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.