Buy or sell: Again Broader indices underperformed major indices due to concerns over high valuations and fears surrounding U.S. tariffs. During the week, large-cap and mid-cap indices shed nearly 3-4%, while the small-cap index declined by more than 5%. Nifty and Bank Nifty recorded losses of 2.9% and 1.3%, respectively.
Weekly Trading Overview
As anticipated in the previous weekly analysis, the formation of daily lower-high closing patterns, which is inherently bearish, dragged Nifty down to 22,124, breaching the key support level of 22,400-22,500. Daily candlestick patterns continue to exhibit lower lows, signalling persistent weakness.
Until Nifty decisively closes above the 23,200 marks on a weekly basis, traders should remain cautious on the buy side. Options data indicates the current Put-Call Ratio (PCR) stands at 0.90. For the upcoming week, the index is expected to trade within the 21,700 to 23,000 range, with key support at 21,700 and resistance at 22,800-23,000.
Bank Nifty Performance
The Bank Nifty index declined by 1.3% but managed to hold its previous low at 47,700. After beginning the week on a positive note, the index experienced persistent selling pressure. Looking ahead, Bank Nifty has crucial support at 47,500 and resistance at 49,500.
Conclusion
Both Nifty and Bank Nifty closed below their respective monthly resistance zones. Nifty’s key resistance level stands at 23,200, while Bank Nifty faces resistance at 49,500. A sustained close below these levels could increase the risk of further downside. Traders and investors should remain vigilant and closely monitor these key levels to navigate the market effectively.
Weekly Stocks
Buy Indian Energy Exchange at ₹152-156; Stop Loss at ₹147; Target Price of ₹165.
Buy Bajaj Finance at ₹8500 -8600; Stop Loss at ₹8250; Target Price of ₹8800.
Sell Shriram Finance at ₹620-625; Stop Loss at ₹640; Target Price of ₹580.
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.
