Buy or sell: The Nifty index continued its downward trajectory this week, marking the seventh consecutive week without closing above the weekly high. Currently trading below last month’s low of 24,000, the index remains in a correction phase and is hovering near its 200-day moving average (DMA).
Weekly Trading Overview
The week started positively with a gap-up opening on Monday, where the Nifty tested a critical resistance range of 24,500–24,600. Optimism faded quickly as profit booking set in, driving the index to a fresh weekly low of 23,500.
Initial optimism was driven by news of Mr. Trump’s re-election in the U.S., boosting Indian markets momentarily. However, the rally lost steam, and the index fell into a lower trading range of 23,500–23,800.
The formation of a head-and-shoulders pattern on the daily chart intensified bearish sentiment. This pattern contributed to a new low at 23,800 and achieving its target of critical support level at 23,500 marks.
Market Outlook
If Nifty holds 23,500, a retest of the 24,500–24,600 resistance zone is possible. Signs of the index being oversold suggest a sideways movement or potential bounce in the coming sessions. Key Levels to Watch are Support: 23,500 and 23,000 Resistance 24,500–24,600.
For Sensex, support is seen at 77,000 and 75,500, while resistance lies at 79,500 and 81,500.
Bank Nifty Performance
The Bank Nifty followed a similar trend of selling pressure throughout the week. The index tested resistance at 52,000 but closed below critical support at 50,500 marks.
Major support for the week now stands at 49,000, with resistance at 52,000. A close below 49,000 could signal further selling pressure in the coming sessions. As the Bank Nifty struggles to sustain above resistance levels, traders should adopt a cautious stance.
Conclusion
Both the Nifty and Bank Nifty indices are testing their monthly support zones with amid continued high volatility. The overall market sentiment remains bearish due to repeated failure to surpass key resistance levels and consistent selling by Foreign Institutional Investors (FIIs). A cautious approach is advised, with an emphasis on tracking support and resistance zones for any signs of recovery.
Stocks to buy on Monday
1. Info Edge India Ltd. (NAUKRI): Buy at ₹7,768 | Target Price at ₹7980 | Stop Loss at ₹7,680.
2. Max Financial Services Ltd. (MFSL): Buy at ₹1,232 | Target Price at ₹1,275 | Stop Loss at ₹1,200.
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.
