Buy or sell: The Nifty index concluded the week at 25,356, positioning itself near the key resistance zone of 25,500. As highlighted in previous analyses, a close above 24,600 ignited bullish momentum, paving the way for resistance targets between 25,200 and 25,500. As we have mentioned following a period of oversold conditions, a pullback rally was anticipated, which indeed materialized, driving rebounds across major indices including Nifty, Bank Nifty, and others. The index exhibited notable volatility throughout the week, oscillating between 24,800 and 25,500.
The consistent closing above the pivotal support level of 24,600 suggests that the bullish trend may continue, with potential to test resistance levels within the 25,200 to 25,500 range. Observers are closely monitoring whether the Nifty can maintain its position above 24,600, as holding this level could indicate further upward momentum. For the near term, the Nifty’s support is firmly placed at the 24,600 closing level.
Weekly Trading Overview
The week began with a gap-down opening on Monday, with the index initially testing the support levels of 25,200 and then dipping further to 24,600-24,800 before rebounding to the resistance level of 25,500 by week’s end. The Nifty’s trading pattern throughout the week involved various stock-specific movements, keeping it within a range of 24,800 to 25,500. The index has been in a sideways phase for nearly three weeks, indicating that a significant move could be on the horizon. Upcoming events, such as the Federal Reserve’s rate decision, are likely to influence market direction. Traders are advised to either hedge their positions or proceed with caution when initiating new trades. For the upcoming week, key support levels are projected around 24,500 to 24,600, while resistance is anticipated near 25,500.
Bank Nifty Performance
The Bank Nifty also opened with a gap-down on Monday and tested the support level of 50,000. However, by the end of the week, it rebounded and closed above the 51,000 support level, approaching the resistance level of 52,000. On the weekly chart, the Bank Nifty has broken its trend line resistance, suggesting potential for further gains if it moves above 52,000. Major resistance is expected at 52,000, with support observed around 49,500 and further resistance projected at 53,500.
Conclusion
Both the Nifty and Bank Nifty indices have managed to close above their respective monthly support zones despite initial market volatility, indicating a generally bullish sentiment. Investors should closely monitor key support and resistance levels as they evaluate trading opportunities in the upcoming sessions.
Stocks to buy on Monday
1] Cholamandalam Financial Holdings: Buy at ₹1911 | Target Price: ₹1980 | Stop Loss: ₹1855
2] Bharti Airtel: Buy at ₹1632 | Target Price: ₹1690 | Stop Loss: ₹1580
3] Tata Steel: Buy at ₹152 | Target Price: ₹168 | Stop Loss: ₹143
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.