The Nifty Index concluded the week at 23,519, firmly maintaining its position above the crucial support level of 23,000. While the Indian stock market saw slight gains, investor enthusiasm remained tempered due to rising concerns over U.S. economic indicators and evolving trade policies. As traders brace for upcoming tariff announcements, many are strategically holding cash to seize opportunities as they arise, particularly with the impending release of U.S. Personal Consumption Expenditures (PCE) inflation data, which could significantly impact the Federal Reserve’s interest rate decisions later this year.

Market Sentiment and Sector Performance

The prevailing uncertainty has led to a cautious trading atmosphere, with significant selling observed across various sectors. Notably, the IT and automobile sectors experienced declines of up to 1%. Despite being in oversold territory recently, the Nifty remains stable above 23,000, hinting at a potential rebound as it inches closer to 24,000.

Technical Outlook

However, the sustainability of the Nifty above the 200-day Exponential Moving Average (EMA) is still in question, posing potential challenges for investors and traders in the weeks ahead. The market’s recent price movements confirmed a downward trendline between 22,800 and 23,000, establishing it as a key support level.

Weekly Trading Summary

The trading week began robustly with a gap-up opening on Monday, as the Nifty tested resistance at 23,800. However, profit-taking across major sectors led to a range-bound market throughout the week, with the index fluctuating between 23,300 and 24,000.

From a technical standpoint, Nifty’s recent behavior indicates a stock-specific approach that leans from positive to cautious in the short term. A decisive breakout above 23,800 could ignite a new wave of buying, potentially pushing the index towards 24,500-24,600. Conversely, ongoing profit-booking at 23,800 may signal a retreat towards 23,000. A close beneath 22,800 could indicate a trend reversal, shifting the market outlook towards bearish territory.

Bank Nifty Performance Highlights

The Bank Nifty index rose above the 50,000-50,500 range, propelled by strong short-covering in banking stocks. Consistent buying across the banking and financial sectors showcases a solid sentiment amidst global uncertainties. Key support for Bank Nifty is established at 50,300-50,500, which aligns with the 200 EMA. Should this level be breached, it may indicate a shift in market sentiment, potentially leading to further declines. Conversely, maintaining levels above this range could help sustain bullish momentum.

Looking Ahead: What to Watch

For the upcoming week, traders should keep a close eye on global cues, particularly the resistance at 23,800 and support at 22,800 for the Nifty’s next directional movement. For the Bank Nifty, sustaining levels above 50,300-50,500 will be essential for maintaining upward momentum. A disciplined approach will be crucial in navigating the fluctuations in this current market landscape.

Stock Recommendations

Here are some stocks to consider for potential investment:

• Container Corporation of India (Concor): Buy at ₹385-390; Target at ₹415; Stop Loss at ₹375.
• Natco Pharma Ltd (NATCOPHARM): Buy at ₹790-800; Target at ₹840; Stop Loss at ₹770.
• Aurobindo Pharma Ltd (AUROPHARMA): Buy at ₹1,140-1,160; Target at ₹1,200; Stop Loss at ₹1,100.

By staying informed and strategic, traders can position themselves effectively in this dynamic market environment.