Buy or sell: The Nifty Index concluded the week at 24,180, falling below the anticipated support zone of 24,800. As noted previously, a close beneath this level could trigger further selling in the equity market, positioning the index toward the 24,000 mark.
With the weekly close near 24,000, market participants are keenly watching whether the Nifty can maintain this critical emotional support level in the coming week.
Weekly Trading Overview
The week started with a gap-down opening on Monday, leading the index to test the support level at 24,800. Despite attempts to reach the immediate resistance zone of 25,300, the market struggled to gain momentum, resulting in profit booking. On the daily chart, a head and shoulders pattern has emerged, indicating bearish potential if the index breaks below its neckline in the 24,800-24,900 range. With a closing below this neckline, further selling could target the 23,500-23,800 range. The put-call ratio (PCR) remains consistently below 1, suggesting heightened bearish sentiment in the near term.
Immediate resistance is set at 24,800, with support levels at 24,000 and subsequently at 23,500 for the upcoming weeks. As the monthly expiry approaches, a short covering or relief rally may provide temporary reprieve.
Bank Nifty Performance
The Bank Nifty mirrored the broader market’s trend, opening with a gap down on Monday. Although it made an attempt to rally towards the resistance level of 52,000, it ultimately lost these gains, closing back near the support zone of 50,500. Falling below the 52,000 level indicates increasing bearishness, necessitating caution for traders. Upcoming support levels for the Bank Nifty are 50,500 and then 49,500.
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] Torrent Pharma: Buy at ₹3433 | Target Price: ₹3600 | Stop Loss: ₹3375
2] ICICI Bank: Buy at ₹1260 | Target Price: ₹1310 | Stop Loss: ₹1230
3] BEL: Buy at ₹275 | Target Price: ₹290 | Stop Loss: ₹265
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.