This past week, the stock market witnessed a remarkable surge across all sectoral indices, with the finance sector emerging as a standout performer, skyrocketing by nearly 9%. Other sectors, including Realty, Power, Infrastructure, and Pharma, also celebrated gains ranging from 5% to 8%, contributing to an overall bullish sentiment in the market.

Weekly Market Recap: A Positive Shift

The Nifty 50 index wrapped up the week with a notable increase of 4%, translating to approximately 900 points added to its value. It began at the 22,500 mark and impressively closed above significant resistance levels, finishing at 23,300.

• Key Highlights:
  • Nifty closed above 23,300.
  • Achieved resistance targets of 22,800 and 23,200.

From a technical standpoint, Nifty continues to establish a higher-low closing pattern on its daily chart, reinforcing its positive outlook. The next trendline resistance is pegged at 23,800, aligning with the 200 EMA. As noted in our previous assessments, there has been a noticeable shift favoring bullish trends. We recommend that traders consider buying on dips, especially while Nifty remains above the 22,000–22,200 range on a closing basis. Furthermore, the 23.6% Fibonacci retracement level at 21,700 serves as strong support moving forward.

Bank Nifty Shows Resilience

In last week’s analysis, we highlighted the challenges faced by IndusInd Bank, which saw a decline of over 25%. However, the Bank Nifty index displayed remarkable resilience, holding steady at its previous low of 47,700. This strength prompted short-covering that enabled Bank Nifty to rebound, ultimately closing above the 50,000 threshold.

• Outlook for Bank Nifty:
  • Sustaining above 49,000 could push the index towards 52,000.
  • A buy-on-dips strategy is advisable as long as it remains above 49,000.

Conclusion: Key Levels to Watch

Both the Nifty and Bank Nifty indices are hovering near critical monthly resistance points—23,600 for Nifty and 50,000 for Bank Nifty. Immediate support levels are established at 22,800 for Nifty and 49,000 for Bank Nifty.

These levels are essential for traders looking to initiate new long positions. It’s crucial for traders and investors to remain vigilant and monitor these key points to effectively gauge market direction in the weeks to come.

Weekly Stock Recommendations

• IRCTC: Buy at ₹720-725; Stop Loss at ₹700; Target Price of ₹755.
• Castrol India: Buy at ₹215-220; Stop Loss at ₹205; Target Price of ₹240.
• Tata Consumer Products: Buy at ₹955-960; Stop Loss at ₹935; Target Price of ₹1000.

By keeping an eye on these recommendations and market trends, investors can navigate the evolving landscape more effectively.