MEHUL KOTHARI
TECHNICAL RESEARCH, ANAND RATHI SHARES AND STOCK BROKERS
Where is the Nifty headed this week?
Technically, Nifty reversed from the 161.8% Fibonacci extension level near 25,200, validating it as a strong resistance zone. The next directional clue will come from 24,450, the previous swing low. A breach below this may drag the index to 24,000 and potentially lower. On the upside, any relief rally is likely to face resistance near 25,200–25,300 and should be seen as a selling opportunity unless momentum convincingly revives. Bank Nifty, after making a fresh life high around 57,000, reversed sharply and ended the week near 55,000, down almost 2%. A close below 55,000 could open downside levels of 54,300 and possibly lower. Conversely, any bullish trend would only resume if the index sustains above 57,000. Trading strategies for the week:
Traders should adopt a cautious and tactical approach. Longs should be avoided near resistance zones (Nifty: 25,200–25,300; Bank Nifty: 57,000) unless there is clear bullish confirmation. Fresh longs may be considered only above 25,300 (Nifty) and 57,000 (Bank Nifty) with proper risk measures. On the downside, a break below 24,450 can trigger short trades targeting 24,000 and below. Similarly, Bank Nifty shorts may be initiated below 55,000, aiming for 54,300. Investors should avoid aggressive buying at current levels. Partial profit booking is advisable. Fresh accumulation can be considered gradually only around 24,000 (Nifty) and 53,500–54,300 (Bank Nifty) zones if signs of stability emerge.
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NAGARAJ SHETTI
SENIOR TECHNICAL RESEARCH ANALYST, HDFC SECURITIES
Where is the Nifty heading this week?
Nifty seems to have entered a broader high-low range of 24,500–25,100 again. Any sharp weakness below 24,500 could trigger a sharp selloff. However, any sustainable bounce from the support could pull Nifty towards 25,100 again in the near term. The overall chart pattern indicates a formation of short-term top reversal pattern at 25,222, as per daily chart.
Trading strategies for the week:
One may wait for a buy-on-dips opportunity around 24,500, and then look for a bounce up to 25,100 in the next few weeks. However, long bets need to be placed with a strict stop loss (SL) at 24,400. Sectors in focus for long positions include automobiles, IT, public sector enterprises (PSEs), pharma, and realty. Bank Nifty, PSU banking, infrastructure, oil & gas, and metals are seen as buy-on-dips candidates. Stocks showing positive bias include Tata Motors, Bharat Forge, Infosys, HCL Tech, Sun Pharma, Biocon, Sobha, and DLF; while Axis Bank, SBI, Canara Bank, BPCL, Tata Steel, Reliance Industries, and Jindal Steel are considered favourable for accumulation on declines.
SACCHITANAND UTTEKAR
VP – RESEARCH, TRADEBULLS SECURITIES
Where is the Nifty headed next week?
Nifty is showing signs of fatigue, struggling to decisively move past the key resistance level of 25,180. Despite the uncertainty, Nifty has managed to hold above its 5-week EMA support at 24,700 for the fourth straight week, indicating that the broader trend remains intact. However, a shift in short-term momentum is evident, as the index closed below its 20-day EMA of 24,790 for the first time since the June series began—an early warning sign of possible weakness. Trend strength indicators on the weekly chart remain neutral. Options data supports the view of a continued consolidative phase, with strong support around 24,500 and upside likely capped near 25,000. The only bullish technical signal is a ‘Rising Three’ candlestick formation on the weekly chart, which awaits confirmation via a close above 25,180.
Trading strategies for the week:
Should the ongoing correction deepen, it may be seen as a staggered accumulation opportunity. Technically, strong support lies at the 20-week EMA near 24,040 and the 50- week EMA around 23,640—zones that are likely to hold and uphold the broader bullish structure. Investors may look at these levels as key zones to re-enter or add selectively during market dips. The top picks are ICICI Bank, Kotak Bank, Bajaj Finserv, Voltas, Bluestar, Tech Mahindra, Mphasis, BHEL, and Torrent Power.
