Buy or sell: This week, the Indian equity markets witnessed notable profit booking, with the Nifty 50 closing at 25,149, down by 1% on a weekly basis. After trading within a narrow range of 25,200–25,600, the index succumbed to heavy selling pressure on Friday, July 11, as investors rushed to book profits amid concerns over a potentially weak earnings season. The sentiment was further dampened by IT major Tata Consultancy Services’ disappointing quarterly results and subdued commentary. Adding to the negative cues was global unease stemming from a fresh tariff announcement by former U.S. President Donald Trump, which also weighed on market confidence.
Weekly market outlook
Nifty 50
In the preceding week, despite rising geopolitical tensions, the Nifty had managed to maintain stability, holding firmly above the crucial support zone of 25,000–25,200. It also sustained support near 24,800, a level aligning with the 61.8% Fibonacci retracement of the recent corrective move. From a technical standpoint, a sustained close above the 25,000–25,200 zone continues to indicate bullish strength, opening the possibility for an upward move toward 25,600–26,000 levels in the coming weeks. However, a breach below the 24,800 mark could signal a short-term halt or a mild correction in the trend. Overall, the broader market trend remains positive as long as the Nifty holds above the 25,000–25,200 range.
Looking ahead, the 25,000 level now emerges as a strong support, backed by the highest Put Open Interest (OI), suggesting that any dip toward this zone may present a buying opportunity. On the upside, immediate resistance is seen at 25,500, where the highest Call OI is concentrated. A sustained move above 25,600 would be necessary to confirm a fresh leg of bullish momentum. Until then, a stock-specific trading approach is recommended.
Bank Nifty
Bank Nifty also experienced profit booking during the week, ending lower at 56,754. The index has established a solid support base at the 56,000 level. As long as it holds above this mark, the possibility of a continued rally toward the 57,500–58,000 range remains strong in the near term.
Conclusion
In conclusion, both Nifty and Bank Nifty have managed to close above their monthly support levels — Nifty above 24,800 and Bank Nifty above 56,000. This reinforces the underlying bullish bias. However, immediate resistance levels at 25,600 for Nifty and 58,000 for Bank Nifty will play a decisive role in defining the short-term trajectory. A confirmed breakout above these resistance points could open the gates for further upside, while failure to do so may keep indices range-bound. Traders are advised to maintain a cautious yet positive outlook, focusing on strong support levels and favoring a stock-specific strategy until broader confirmation emerges.
Weekly stocks to buy or sell
Buy SBI at ₹805-810; Stop Loss at ₹785; Target Price of ₹830.
Buy SBI Life at ₹1830-1840; Stop Loss at ₹1780; Target Price of ₹1900.
Buy Cholamandalam Investment at ₹1530-1540; Stop Loss at ₹1590; Target Price of ₹1500.
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.
