Markets concluded the week on a subdued note, as investors grappled with global uncertainties and awaited key domestic developments. The benchmark indices experienced volatility, with the Sensex and Nifty oscillating within a narrow range before closing marginally lower. The Nifty settled at 24,853.15, while the Sensex ended at 81,721.08, reflecting cautious investor sentiment.
The Nifty’s inability to sustain levels above 25,200 suggests that the index is undergoing a consolidation phase, with immediate support around 24,500, near its short-term moving average (20-DEMA). A breach below this level could lead to further downside toward 24,100, potentially derailing the prevailing positive trend. On the upside, a decisive breakout above 25,200 could reignite bullish momentum and pave the way toward the 25,600 level.
We maintain our view that the banking index holds the key to the next directional move in the Nifty. The index has spent over a month consolidating within a tight range while holding firmly above its short-term support around 54,600 (20-DEMA). A breakout above 56,000 could provide the necessary thrust to test the 57,500 level.
We recommend maintaining a positive bias unless the Nifty decisively breaks below the 24,500 mark, with a continued focus on stock selection. Preference should be given to sectors such as banking, financials, energy, metals, and realty, while remaining selective in others. Traders are advised to maintain strict stop-loss levels and stay prepared for heightened volatility. Keeping abreast of global developments and key domestic policy announcements will be essential in navigating the markets in the weeks ahead.
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, consider individual risk tolerance, and conduct thorough research before making investment decisions, as market conditions can change rapidly, and individual circumstances may vary.
