Buy or sell: This week, the Indian equity markets experienced notable profit booking, with the Nifty 50 closing at 24,837, marking a weekly decline of 0.75%. After trading within a narrow range of 24,800–25,200, the index faced heavy selling pressure on Friday as investors rushed to book profits amid concerns over a potentially weak earnings season and lingering uncertainty surrounding the upcoming U.S. tariff announcement. Despite the volatility, the Nifty managed to maintain key support levels, trading largely between the 24,800–25,200 range. Importantly, it held above the 24,800 mark, which coincides with the 61.8% Fibonacci retracement level of the recent correction—a zone seen as a crucial technical support.
Weekly market outlook
Nifty 50
From a technical perspective, a sustained move above the 25,000–25,200 resistance band would indicate a resurgence in bullish momentum, potentially paving the way for a move toward the 25,200–25,300 levels in the coming weeks. Conversely, a break below 24,800 could trigger a short-term pause or mild correction in the prevailing uptrend. Currently, the broader market outlook remains positive as long as the index continues to hold within the 24,800–25,200 consolidation zone. Derivatives data further support this view, with the highest Put Open Interest (OI) concentrated at the 24,800 level, reinforcing it as a strong support area and a potential buying opportunity on dips. On the upside, resistance is noted at 25,000 and 25,200, where the highest Call OI is observed. A decisive break above 25,200 would be essential to confirm the next leg of the rally. Until such a breakout occurs, a stock-specific trading approach is advisable.
Bank Nifty
The Bank Nifty index also witnessed some profit booking but managed to close higher by 0.30% for the week, ending at 56,528. It has established a robust support base at the 56,000 mark. As long as this level holds, the index remains well-positioned for a potential upward move toward the 57,500–58,000 range 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 Glenmark Pharmaceuticals at ₹2145-2150; Stop Loss at ₹2100; Target Price of ₹2200.
Buy Tata Chemicals at ₹935-940; Stop Loss at ₹920; Target Price of ₹980.
Buy TVS Motor Company at ₹2770-2780; Stop Loss at ₹2720; Target Price of ₹2850.
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.
