Buy or sell: The Nifty index concluded the week at 24,852, settling comfortably within the anticipated support zone of 24,800-24,900. Throughout the week, the index demonstrated notable volatility, oscillating between 24,800 and 25,400. The consistent close above the key support level of 24,600 suggests that the bullish trend may persist, with the potential to test resistance levels in the range of 25,200 to 25,500.
Market participants are closely monitoring whether the Nifty can sustain its position above 24,600, as maintaining this level could signal further upward momentum. For the immediate future, the Nifty’s support is now pegged at 24,600.
Weekly Trading Overview
The week commenced with a gap-up opening on Monday, where the index initially approached the resistance level of 25,500. The trading pattern throughout the week included various stock-specific movements, keeping the Nifty within a trading range of 24,800 to 25,500.
Technically nifty currently into oversold zone. Looking ahead to the next week, key support levels are projected to be around 24,500 to 24,600, while resistance is anticipated near 25,200.
Bank Nifty Performance
The Bank Nifty also experienced a gap-up opening on Monday and attempted to reach the resistance level of 52,000. However, by the end of the week, it relinquished its gains and closed below the 51,000 support level.
Technically, the Bank Nifty has formed a bearish flag pattern, indicating a potential downward trend. Major support for this downward range is observed at 49,500, while immediate resistance is identified at 52,000. Further resistance for the Bank Nifty is projected at 53,500.
Conclusion
Both the Nifty and Bank Nifty indices have successfully closed above their respective monthly support zones despite initial market volatility, maintaining a generally bullish sentiment. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions.
Stocks to buy on Monday
1] Hindustan Unilever: Buy at ₹2840 | Target Price: ₹2950 | Stop Loss: ₹2760
2] ITC: Buy at ₹502 | Target Price: ₹530 | Stop Loss: ₹485
3] Zomato: Buy at ₹260 | Target Price: ₹285 | Stop Loss: ₹245
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
