Buy or sell: This week, all sectoral indices ended in green, with the metal index emerging as the top performer, gaining almost 8%, followed by power, capital goods, and infrastructure sectors, which recorded gains of approximately 5% to 7%. The Nifty 50 ended in green with an almost 2% gain, adding around 600 points. However, Bank Nifty underperformed relative to Nifty, gaining only about 0.10%.
Table of Contents
Weekly Trading Overview
Nifty began the week at the 22,000 level, which is close to a significant support level of 21,700—corresponding to a 23.6% retracement from the COVID-19 low and 26,400 which is 52 week high. Currently, the nifty has started forming a HIGHER-LOW closing pattern, which is bullish in nature. so the trendline resistance stands at the 23,200 level. A closing above the 22,800 level could extend the rally towards 23,200 and 23,600 levels, the latter being near to the 200 EMA.
As highlighted in our previous analysis, Nifty had been forming a daily lower-high pattern, indicating a bearish trend that could have potentially pulled the index down to the support level of 21,700. However, we have observed a shift in pattern, which now suggests a bullish outlook. Therefore, we advise traders to buy on dips as long as the market sustains above the 22,000–22,200 zone on a closing basis. The 23.6% retracement level at 21,700 could provide strong support in the coming days.
Bank Nifty Performance
The Bank Nifty index started the week on a flat note, underperforming compared to Nifty. It managed to hold its support area at 47,500. Looking ahead, immediate resistance stands at 49000 marks. The expected trading range for Bank Nifty next week is between 47,500 and 50,000.
Conclusion
Both Nifty and Bank Nifty closed below their respective monthly resistance zones—23,600 for Nifty and 50,000 for Bank Nifty. However, immediate strong support levels are seen at 21,700 for Nifty and 47,500 for Bank Nifty in the upcoming weeks. These levels will be crucial for initiating fresh long positions. Investors and traders should remain cautious and closely monitor these key levels to gauge future market direction.
Weekly Stocks
Buy Usha Martin at ₹330-335; Stop Loss at ₹310; Target Price of ₹365.
Buy L&T Technology Services at ₹4825; Stop Loss at ₹4760; Target Price of ₹4980.
Buy Balkrishna Industries at ₹2560; Stop Loss at ₹2500; Target Price of ₹2750.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
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