Buy or sell: This week, the Indian equity markets showcased notable resilience amid rising geopolitical tensions between India and Pakistan. While markets initially consolidated, they ended the week with only a modest decline. The Nifty index traded in a relatively tight range of 23800-24600 marks, before closing with a net weekly loss of 338 points.
Despite the downward move, the markets held above key support levels. However, volatility surged sharply, as reflected in the India VIX, which jumped by 18.49%, closing at 21.63 on a weekly basis.
In our previous analysis, we highlighted the 24,600–24,700 zone as a critical technical resistance level. This zone represents the 61.8% Fibonacci retracement of the overall market fall and holds significant importance. Additionally, the 200-day EMA, currently around the 23,600 mark, continues to act as a key support area.
Technically, as long as the market remains below the 24,500–24,700 zone, a cautious outlook is warranted. A sustainable breakout above this resistance range is essential for fresh bullish momentum. Market participants should continue to monitor the geopolitical developments closely.
Bank Nifty
Bank Nifty also witnessed profit booking, registering a 2.5% decline for the week. It closed near its support level at 53,000. Immediate support is seen at 53,000, while resistance lies in the 56,000 zone.
Looking ahead, if Bank Nifty sustains above 53,000, it may attempt a recovery toward the 54,000–54,500 levels. However, until a strong close above these levels is observed, a cautious trading approach is advisable.
Conclusion
Both Nifty and Bank Nifty have managed to close above their respective monthly support levels for Nifty: 23,600 and for Bank Nifty: 53,000
However, immediate resistance at 24,600–24,700 for Nifty and 56,000 for Bank Nifty will be crucial in determining further market direction.
Fresh long positions should be considered only after a decisive breakout above these resistance zones. Traders and investors are advised to maintain a cautious stance and closely track developments—both technical and geopolitical—in the coming week.
Weekly stocks to buy or sell
Buy HAL at ₹4500-4525; Stop Loss at ₹4300; Target Price of ₹4800.
Buy JSW Steel at ₹955-960; Stop Loss at ₹940; Target Price of ₹990.
Buy Sun Pharma at ₹1725-1745; Stop Loss at ₹1675; Target Price of ₹1830.
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.
