In recent trading sessions, broader market indices faced challenges due to rising concerns surrounding U.S. tariffs, leading to underperformance against major indices. The IT sector took a substantial hit, experiencing a nearly 6% decline throughout the week. Meanwhile, mid-cap and small-cap indices fell by approximately 2-4%, with Nifty and Bank Nifty reflecting losses of 0.9% and 1.07%, respectively.
Weekly Trading Insights
As predicted in last week’s analysis, the patterns of daily higher lows hinted at Nifty’s potential movement toward a resistance level of 22,800. Despite a short-covering rally peaking at 22,700, Nifty struggled to maintain a close above 22,800. Technically, the index retains its previous week low around the 22,000 mark. The weekly candlestick patterns continue to demonstrate higher highs, indicating ongoing bullish momentum.
Key Market Indicators
- Current Put-Call Ratio (PCR): 0.90
- Expected Nifty trading range: 21,700 to 23,000
- Support: 21,700
- Resistance: 22,800-23,200
Traders are advised to hold long positions until Nifty decisively closes below the 22,000-21,800 range on a weekly basis. However, caution is advised near the resistance levels of 22,800 and 23,200 as we move into the upcoming week.
Bank Nifty Performance Review
The Bank Nifty index witnessed a decline of 1.3%, yet it managed to maintain its previous low at 47,700. Notably, IndusInd Bank experienced a significant drop of over 28% for the week. For Bank Nifty to continue its upward trajectory, it must hold the critical support level of 47,700 on a closing basis, which could pave the way for a potential rally toward the 49,000 resistance level. The anticipated trading range for Bank Nifty this week is 47,500-49,000.
Conclusion and Future Outlook
Both Nifty and Bank Nifty closed below their respective monthly resistance zones—23,600 for Nifty and 50,000 for Bank Nifty. However, immediate support levels remain strong at 21,700 for Nifty and 47,500 for Bank Nifty. These levels will be essential for initiating fresh long positions in the market. Investors and traders are encouraged to stay vigilant and monitor these key levels closely to better understand future market movements.
Recommended Stocks for the Week
- Tata Consumer Products: Buy at ₹945-950; Stop Loss at ₹925; Target Price of ₹975.
- Bajaj Finance: Buy at ₹8300-8350; Stop Loss at ₹8150; Target Price of ₹8600.
- Avenue Supermarts: Buy at ₹3780-3800; Stop Loss at ₹3740; Target Price of ₹3950.
By keeping a close eye on market trends and executing informed trades, investors can navigate these fluctuations effectively.
