In recent weeks, the Nifty Index has shown remarkable resilience, driven by an influx of capital from Foreign Institutional Investors (FIIs) who have invested around ₹30,000 crore in the cash market. This surge in buying activity has been primarily influenced by favorable global and domestic developments, including a strategic pause on reciprocal tariffs announced by U.S. President Donald Trump and a supportive stance from the Reserve Bank of India, which has significantly uplifted investor confidence. However, escalating geopolitical tensions between India and Pakistan have introduced some volatility, impacting the market’s upward trajectory as the week drew to a close.
Nifty’s Technical Outlook
From a technical standpoint, the Nifty is on a path toward the 24,500–24,600 resistance zone, closely aligned with the 61.8% Fibonacci retracement level from its recent decline. The prevailing market trend continues to favor a buy-on-dips strategy, as long as the Nifty maintains its position above the critical support range of 21,700–22,000. This support zone, reflecting the 23.6% Fibonacci retracement from the lows during the COVID-19 pandemic, is essential for long-term bullish sentiment.
- Resistance Levels: 24,500–24,600
- Immediate Support: 21,700–22,000
- Emotional Resistance: 23,900–24,000
A successful breakout above 23,900–24,000 could lead the Nifty to test the 24,500–24,600 target. However, due to recent geopolitical tensions, some profit-taking was observed, and if the Nifty slips below 23,800, further declines could occur, potentially dragging it down to 23,500 and even lower to 23,200–22,900.
Bank Nifty Performance
Similarly, the Bank Nifty index has shown impressive strength, nearing its all-time high while maintaining a solid position above the 50,000 threshold, which aligns with its 200-day EMA offering substantial technical support. The immediate support for Bank Nifty is now observed in the 52,000–53,000 range.
Final Thoughts
Both the Nifty and Bank Nifty have successfully closed above their significant monthly support levels—23,500 for Nifty and 52,000 for Bank Nifty. Long-term supports remain critical at 21,700 for Nifty and around 50,500 for Bank Nifty, which are essential for new long positions.
Traders should exercise caution in the current market landscape, keeping a close eye on these important technical levels while remaining vigilant about developments surrounding geopolitical tensions that could influence market movements.
Recommended Stocks to Watch
- Buy Sun Pharma at ₹1785; Stop Loss at ₹1740; Target Price of ₹1850.
- Buy Aurobindo Pharma at ₹1220; Stop Loss at ₹1170; Target Price of ₹1300.
- Sell HCL Tech at ₹1580; Stop Loss at ₹1620; Target Price of ₹1520.
- Sell NTPC at ₹357; Stop Loss at ₹370; Target Price of ₹330.
Stay informed and adapt your trading strategies according to these insights to navigate the market effectively!
