Buy or sell: The Indian equity markets witnessed notable profit booking this week, with the Nifty 50 closing at 24,565, registering a weekly decline of 0.90%. The index broke decisively below its recent consolidation range of 24,800–25,200, a zone it had maintained over the previous week.
Friday’s heavy sell-off was particularly significant, driven by concerns over a potentially weak earnings season and an unexpected imposition of steep tariffs by the Trump administration. Additionally, market sentiment was impacted by the U.S. Federal Reserve’s decision on July 30 to keep the key short-term interest rate unchanged at 4.25%–4.50% for the fifth consecutive time, despite growing pressure from President Donald Trump to reduce borrowing costs.
Weekly market outlook
Nifty 50
From a technical standpoint, a sustained close below the 24,800–25,200 range has reinforced bearish sentiment, potentially opening the path for a further decline toward the 24,300 levels in the near term. A breach below 24,800 suggests a short-term pause or minor correction within the broader uptrend. The overall trend, however, remains bearish in the short term as long as the Nifty trades below the 25,000–25,200 mark. The 24,800–25,000 zone now emerges as a critical resistance area, supported by the highest Call Open Interest (OI). On the downside, 24,200 and 24,500 are key support levels, backed by significant Put OI. A sustained move above 25,200 would be essential to confirm the resumption of bullish momentum.
Bank Nifty
The Bank Nifty also closed the week on a weaker note at 55,617, continuing to exhibit signs of weakness. The index now faces immediate resistance in the 56,500–57,000 zone, with a decisive breakout above this range potentially triggering a fresh uptrend. On the downside, the 55,000 level is expected to attract buying interest and acts as a crucial support level for the index.
Conclusion
On a broader timeframe, both the Nifty and Bank Nifty closed the week below their respective monthly support levels—23,800 for Nifty and 56,000 for Bank Nifty—indicating a continuation of the prevailing short-term bearish sentiment. For the week ahead, key levels to watch include support at 24,200–24,300 and resistance at 25,200 for the Nifty, while Bank Nifty holds support between 55,000–55,500 and faces resistance at 57,000.
Traders are advised to remain cautious and closely monitor global cues and geopolitical developments, which may influence short-term market direction. While the broader trend remains cautiously optimistic, a breakout above the identified resistance levels will be essential to confirm the resumption of upward momentum.
Weekly stocks to buy or sell
Buy National Aluminium Co at ₹178-180; Stop Loss at ₹174; Target Price of ₹188.
Buy Central Depository Services (India) at ₹1470-1480; Stop Loss at ₹1430; Target Price of ₹1540.
Buy Marico at ₹705-710; Stop Loss at ₹685; Target Price of ₹735.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
