Buy or sell: Last week, both the Nifty and Bank Nifty indices were in oversold conditions, which led to a significant rebound followed by sideways movement. The Nifty index bounced from the key support level of 24,800 but was unable to break through the immediate resistance at 25,300.
Throughout the week, it remained within this range, showing some weakness but recovering towards the end. Market sentiment continues to be cautious due to the prevailing geopolitical tensions between Israel and Iran, along with SEBI's new, stricter regulations on the derivatives market.
The week opened with a gap-up as the Nifty tested the 25,300-resistance zone, but profit-booking persisted throughout, causing the index to close near the support zone of 24,800-25,000 after reaching a new weekly low of 24,600. The critical near-term support is 24,800, which aligns with last month’s low. If the index falls below the 24,800-24,900 range, it may correct further toward 24,000 in the coming week. The key support level for the week is placed at 24,600, which is close to the 100-day moving average (100DMA), while resistance lies at 25,700. A sustained close above the 25,700-25,800 range could trigger an upward move targeting the previous lifetime high of 26,300.
In the case of Bank Nifty, the index closed the week at the 52,000 level, registering a 2% gain. After opening with a gap-up on Monday, it experienced continuous selling pressure, reaching the support zone of 50,000-50,500 and at the weekend recovered back and close above the resistance zone of 52000 marks. If Bank Nifty closes daily above 52,000, there is a possibility for upward movement toward the 53,000-53,500 resistance zone, which corresponds to the previous weekly high. Key support remains at 50,000, and traders are advised to exercise caution if the index closes below 52,000.
Both the Nifty and Bank Nifty indices have managed to close above their respective monthly support zones, despite initial market volatility, maintaining a generally bullish bias. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions.
1] DLF: Buy at ₹865-875 | Target Price: ₹915 | Stop Loss: ₹840
2] LIC Housing Finance: Buy at ₹615-620 | Target Price: ₹650 | Stop Loss: ₹590
3] National Aluminium Company Limited: Buy at ₹232 | Target Price: ₹255 | Stop Loss: ₹215
Disclaimer: The views and recommendations provided in this analysis are those of individual analysts or broking companies, not Mint. We strongly advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and individual circumstances may vary.
