Buy or sell: This week, the Indian equity markets witnessed significant profit booking, with the Nifty 50 ending at 24,968, marking a weekly decline of 0.76%. The index broke decisively below the consolidation range of 25,200–25,600, which it had maintained for the past two weeks. Heavy selling pressure on Friday, triggered by concerns over a potentially weak earnings season and disappointing quarterly results from Axis Bank, led to the breakdown. Despite the weakness, Nifty managed to sustain support near the 24,800 level, which coincides with the 61.8% Fibonacci retracement of the recent corrective move.
Weekly market outlook
Nifty 50
From a technical perspective, a sustained close above the 25,000–25,200 zone would reinforce bullish sentiment and pave the way for a potential rally toward the 25,600 levels in the coming weeks. Conversely, a breach below 24,800 could indicate a short-term pause or minor correction in the ongoing uptrend. The broader market trend remains constructive as long as the index holds above the 25,000–25,200 range. Notably, the 24,900–25,000 zone now stands out as a strong support area, backed by the highest Put Open Interest (OI), suggesting that dips toward this level may present buying opportunities. On the upside, immediate resistance lies at 25,200 and 25,500, where the highest Call OI is concentrated. A sustained move above 25,600 would be required to confirm the resumption of bullish momentum. Until then, a stock-specific trading strategy is advisable.
Bank Nifty
Bank Nifty also closed the week on a weak note at 56,283, weighed down by subdued earnings from Axis Bank and lackluster commentary. The index continues to exhibit weakness and now faces immediate resistance at the 57,000 mark. A decisive breakout above this level could trigger a fresh uptrend, with upside potential toward the 58,500–59,000 range. On the downside, any dip toward the 56,000 level is likely to attract buying interest, making it a crucial support zone for the index.
Market Strategy & Key Levels
On a broader timeframe, both Nifty and Bank Nifty ended the week above their respective monthly support levels—23,800 for Nifty and 55,000 for Bank Nifty—indicating a continuation of the prevailing bullish sentiment. For the upcoming week, key levels to monitor include support at 24,800–25,000 and resistance at 25,600 for Nifty, while Bank Nifty holds support at 55,000–55,500 and faces resistance at 58,000. Traders are advised to remain vigilant to global cues and geopolitical developments, which may influence short-term market direction. While the underlying market trend remains constructive, a breakout above the mentioned resistance levels would confirm the resumption of upward momentum.
Weekly stocks to buy or sell
Buy Pidilite Industries at ₹2950-2960; Stop Loss at ₹2900; Target Price of ₹3030.
Buy Tata Steel at ₹160-162; Stop Loss at ₹155; Target Price of ₹168.
Buy Interglobe Aviation at ₹5840-5860; Stop Loss at ₹6100; Target Price of ₹5780.
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.
