Buy or sell: Broader indices underperformed this week, largely due to concerns surrounding U.S. tariffs. After U.S. tariffs announcement the IT sector led the decline, shedding nearly 8%, followed by the metal sector with a 7% drop, and capital goods falling by 4%. Mid-cap and small-cap indices were also under pressure, losing approximately 1–3%. Meanwhile, the Nifty and Bank Nifty ended the week with losses of -2.5% and -0.50%, respectively.
Weekly Trading Overview
As anticipated in the previous weekly analysis, the Nifty’s movement continues to reflect a stock-specific, positive-to-cautious tone. The index faced persistent selling pressure around the 23,700 marks, resulting in a decline toward the 22,800–23,000 support zone.
A decisive close above 23,800 could trigger a fresh wave of buying, potentially pushing the index toward the 24,500–24,600 range. However, continued profit-booking near 23,800—which coincides with the 200 EMA—suggests weakness.
The Nifty attempted a short-covering rally up to 23,800, but failed to sustain it, closing below its previous weekly low near 23,300. Technically, daily candlestick patterns continue to exhibit lower high closes, indicating persistent bearish momentum.
A close below 22,800 on the weekly or monthly scale would confirm a trend reversal, turning the outlook bearish, and potentially pushing the Nifty toward 22,100–22,200, which aligns with the previous monthly lows.
Options data supports this cautious view, with the Put-Call Ratio (PCR) at 0.90, indicating bearish sentiment. For the upcoming week, the expected range for Nifty is 22,100 to 23,300, with key support at 21,700 and resistance at 23,700.
Bank Nifty Performance
The Bank Nifty outperformed relatively, declining only 0.50%. It managed to hold above the crucial support zone of 50,300–50,500, which is also its previous weekly low and near the 200 EMA.
As long as Bank Nifty sustains above the 50,000 mark on a weekly closing basis, long positions may continue to build at the stock-specific level. A potential upside toward the 52,000 resistance is likely if support holds. The expected trading range for Bank Nifty this week is 50,000–52,000.
Conclusion
Currently, the Nifty is hovering near its monthly support zone of 22,800, indicating vulnerability, while Bank Nifty still holds its major support level of 50,200–50,500.
For the coming week: Nifty Support: 22,100; Resistance: 23,700
Bank Nifty Support: 50,000–50,200;
Weekly Stocks
Buy ICICI Bank at ₹1320-1325; Stop Loss at ₹1290; Target Price of ₹1370.
Buy Astral at ₹1330 -1335; Stop Loss at ₹1365; Target Price of ₹1280.
Buy Prestige Estates Projects at ₹1110-1120; Stop Loss at ₹1070; Target Price of ₹1180.
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.
