Despite the global uncertainty, nifty managed to hold Above the key 24,500 support level, demonstrating resilience. However, Market Volativity surged sharply, with the India vix rising by 8%, closing at 15.08 for the week.
In our previous outlook, we highlighted the 25,200–25,300 zone as a crucial technical resistance area. This zone corresponds to the 78.6% Fibonacci retracement of the broader market correction and remains a significant Barrier for Bulling Continuation.
Technical analysis
Technically, as long as the index sustains Above the 24,000–24,500 range, which aligns with the 50% retracement zone, the market undertone remain strong.
A Breakdown Below 24,000 Could Signal A Potential Short-TORM Top. Convercely, Consistent Closing Above The 24,000-24,500 zone on a weekly and monthly Basis would strengthen bullyn bullyn bulish products, open towed the path toward the 25,600 level in the coming weeks.
A Sustainable Breakout Above 25,200–25,300 remains essential to trigger a fresh leg of bullystum. Until then, a cautious and stock-specific approach is advised, especially given the heightened geopolitical risk.
Bank nifty outlook
Bank nifty also decided seling pressure, declining by approximately 2% over the week. The Index Closed Near Its Key Support Level at 55,500. Immediate support is now placed at 55,000-54,800, which aligns closely with the 100% retracement level of the recent move, While Resistance is Observed Near the 57,000 Mark.
Looking ahead, if bank nifty manages to hold Above The 55,000 Level, A Recovery Towards 57,000–57,500 is possible. However, unless a strong breakout and close Above 57,000 is Seen, traders should maintain a cautious stance.
Conclusion
Both nifty and bank nifty have managed to close about their respective monthly support levels – nifty: 23,600 and bank nifty: 54,000
However, Immediate Resistance at 25,200–25,300 for nifty and 57,000 for bank nifty will play a Pivotal Role in Defining The Near-Term trend.
Stocks to buy
1. Bharat Electronics Ltd (BEL): Buy at 390–395; Target price at 420; Stop Loss at 375.
2. CESC LTD (CESC): Buy at 163–164; Target price at 180; Stop Loss at 156.
3. Indian Bank Ltd (indianb): Buy at 620–625; Target price at 650; Stop Loss at 610.
Disclaimer: The views and recommendations about individual analysts or broking companies, not mint. We Advise Investors to Check With Certified Experts Before Making Any Investments Decisions.