Buy or sell: This week, the Indian equity markets witnessed a significant breakout, ending a prolonged consolidation phase, primarily influenced by rising geopolitical tensions between Iran and Israel. The Nifty 50, after trading in a tight range of 24,500–25,200, closed the week strongly at 25,637, marking a decisive breakout and signaling a bullish continuation. In our previous analysis, we had highlighted the 25,200–25,300 zone as a crucial resistance area, which also coincided with the 78.6% Fibonacci retracement level of the broader market correction.
Weekly market outlook
Nifty outlook
The index has now successfully breached this barrier, indicating a shift in market momentum toward the upside. From a technical perspective, the broader trend remains strong as long as the Nifty sustains above the 24,000–24,500 range, which aligns with the 50% Fibonacci retracement zone. A close below 24,000 could, however, signal a short-term top and shift the sentiment to cautious.
On the upside, immediate resistance is observed at the 26,000 mark, where the highest Call OI stands. A sustained move above 25,600 is required to confirm a fresh leg of bullish momentum. Until such confirmation is achieved, a stock-specific trading approach is advised.
Bank Nifty outlook
Meanwhile, Bank Nifty also delivered a bullish breakout, moving past the key 56,000–57,000 resistance band. It ended the week at 57,443, strengthening the broader positive sentiment in the financial sector. The index now has a firm support base at the 56,000 level. As long as Bank Nifty sustains above this mark, continued upside toward the 58,500–59,000 levels is highly probable in the coming weeks.
Conclusion
In conclusion, both Nifty and Bank Nifty have managed to close above their respective monthly resistance levels — Nifty above 25,600 and Bank Nifty above 57,000. This reinforces the underlying bullish bias. However, immediate resistance levels at 26,000 for Nifty and 58,500 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 ₹800-805; Stop Loss at ₹785; Target Price of ₹830.
Buy Tata Chemical at ₹930-940; Stop Loss at ₹900; Target Price of ₹1000.
Buy National Aluminium Co at ₹185-190; Stop Loss at ₹180; Target Price of ₹205.
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.
