The Nifty index continued to slide this week, marking its seventh straight week without closing above the previous weekly high. It is currently trading below last month’s low of 24,000, stuck in a correction phase and nearing its 200-day moving average (DMA).
Weekly Market Recap
The week began on a positive note, with a strong opening on Monday. The Nifty briefly tested the critical resistance zone of 24,500–24,600. However, this optimism was short-lived as profit booking took over, pushing the index to a new weekly low of 23,500.
Initial positivity came from news of former U.S. President Trump’s re-election, which briefly boosted Indian markets. But the rally quickly faded, leaving the index in a lower trading range of 23,500–23,800.
A bearish “head-and-shoulders” pattern formed on the daily chart, adding to selling pressure and dragging the index to its critical support level of 23,500.
Market Outlook
If the Nifty holds the 23,500 support level, there’s a chance of a rebound to the resistance zone of 24,500–24,600. The index is currently oversold, which could lead to a sideways trend or a potential bounce.
- Support Levels: 23,500 and 23,000
- Resistance Levels: 24,500–24,600
For the Sensex, key support is at 77,000 and 75,500, while resistance lies at 79,500 and 81,500.
Bank Nifty Performance
The Bank Nifty also faced selling pressure. It tested resistance at 52,000 but closed below the crucial support of 50,500.
- Support Levels: 49,000
- Resistance Levels: 52,000
A close below 49,000 could trigger more selling. With resistance levels proving hard to break, traders should remain cautious.
Conclusion
Both the Nifty and Bank Nifty are testing important monthly support levels amid high volatility. Persistent foreign investor selling and repeated failures to cross key resistance zones have kept the market sentiment bearish. Traders are advised to track support and resistance levels closely and proceed with caution.
Ganesh Dongre’s Stock Picks for Monday
- Info Edge India Ltd. (NAUKRI)
- Buy at: ₹7,768
- Target Price: ₹7,980
- Stop Loss: ₹7,680
- Max Financial Services Ltd. (MFSL)
- Buy at: ₹1,232
- Target Price: ₹1,275
- Stop Loss: ₹1,200
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