Buy or sell: The Nifty 50 index wrapped up the week at 24,304, reflecting notable volatility as traders navigated through market dynamics. As the monthly expiry approached, a short covering rally provided a brief respite, enabling the index to bounce nearly 500 points and reaching nearby resistance levels around the 24,700-24,800 zone.
Weekly Trading Summary
The week kicked off with a gap-down opening on Monday, pushing the index to test the critical support level at 24,000. A subsequent rebound saw the Nifty 50 climb back towards the resistance zone of 24,600-24,800, though it ultimately faced profit booking, pulling it back to around the 24,200 mark.
Despite several attempts to breach the immediate resistance levels of 24,600-24,800, the market struggled to maintain upward momentum, resulting in increased profit-taking.
On the daily chart, a head and shoulders pattern has still hinting at potential bearish movements if the index stays below its neckline in the 24,800-24,900 range its signal further selling pressure, targeting the lower range of 23,500-23,800. The first support level remains at 24,000; if the Nifty fails to reclaim the neckline above 24,800, further declines could materialize towards the 23,500-23,800 zone.
Immediate resistance is set at 24,800, with support levels at 24,000 and subsequently at 23,500 for the upcoming weeks.
Bank Nifty Performance
The Bank Nifty mirrored the broader market’s trend, opening with a gap down on Monday. then it made an attempt to rally towards the resistance level of 52,000, it ultimately lost these gains, closing back near the support zone of 51,000. Falling below the 52,000 level indicates increasing bearishness, necessitating caution for traders. Upcoming support levels for the Bank Nifty are 50,500 and then 49,500.
Conclusion
Both the Nifty 50 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
1] Syrma SGS Technology | Buy at ₹499 | Target Price: ₹560 | Stop Loss: ₹475
2] RBL Bank | Buy at ₹176 | Target Price: ₹185 | Stop Loss: ₹170
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.