Buy or sell: Indian equity benchmarks broke their recent losing streak, ending the week on a positive note with gains of nearly 1.50%. At the close, the Nifty stood at 25,112, the Sensex at 82,408, and the Bank Nifty at 56,252. On the global front, equity markets remained largely range-bound amid ongoing geopolitical tensions between Israel and Iran, which continued to keep investor sentiment cautious.
Weekly Market Overview
Nifty Outlook
Nifty continued its consolidation phase within a well-defined range of 24,500–25,200, maintaining this zone for the past two weeks. The index found confidence after the RBI’s rate cut announcement, successfully holding the key support at 24,700 throughout the week. It gradually moved towards the upper end of the range near 25,200, which also aligns with the 61.8% Fibonacci retracement level of the recent corrective move.
A sustained close above 25,300 would be a strong bullish signal, potentially opening the path toward 25,600–26,000 levels. However, if the index breaks below 24,500, it could lead to a short-term pause or mild correction, especially considering the uncertain global backdrop.
Bank Nifty Outlook
The Bank Nifty closed at 56,250, continuing to display strength. The index now faces immediate resistance at 57,000, while strong support is placed around 55,000.
A decisive breakout above 57,000 could trigger a fresh uptrend toward 58,500. On the other hand, dips toward 55,000 are likely to see accumulation. Notably, long positions are building up in major private banks such as HDFC Bank, Axis Bank, and others, reinforcing a ‘buy on dips’ strategy for Bank Nifty.
Conclusion and market strategy
On a broader time frame, both indices closed the week above their respective monthly support levels—23,800 for Nifty and 54,000 for Bank Nifty—signaling continued bullish sentiment.
Key major structural supports:
• Nifty: 21,700
These levels remain crucial for maintaining the long-term positive outlook and serve as strong reference points for fresh long entries.
Key Levels to Watch Next Week
• Nifty: Resistance at 25,300, Support at 24,500
• Bank Nifty: Resistance at 57,000, Support at 55,000
Traders and investors are advised to stay alert to global cues and geopolitical developments, which may influence short-term market direction. While the underlying trend remains constructive, a breakout above key resistance levels would confirm renewed upward momentum.
Weekly stocks to buy or sell
Buy Rashtriya Chemicals and Fertilizers at ₹151-153; Stop Loss at ₹142; Target Price of ₹165.
Buy Chennai Petroleum Corporation at ₹625-630; Stop Loss at ₹610; Target Price of ₹655.
Buy Tata Chemicals at ₹910-920; Stop Loss at ₹880; Target Price of ₹850.
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.
