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Nifty

Nifty ended the week at 24,750.70, down 0.33%, amid mixed sectoral performance. PSU banks outperformed, while metals, IT, and autos faced selling pressure. Global cues remained uncertain as US trade tensions resurfaced and investors await key data points like the US PCE index, China’s PMI, and RBI’s policy meet.

Technically, Nifty is consolidating within the 24,600–25,050 range. A decisive move above 24,900 may push the index towards 25,200–25,600. On the downside, 24,600 remains strong support, with further buying expected near 24,400. RSI at 55.52 is dipping, hinting at waning bullish momentum.

India VIX dropped 2.09% to 16.07, reflecting temporary cooling of market fear. Derivatives data shows strong call writing at 25,000–25,500 and put support at 24,400, creating a defined trading range.

Strategy: Stay range-bound with a bullish bias. Buy on dips near 24,600–24,400 and trail profits above 24,900. Major breakout or breakdown expected only on clear triggers. Keep risk tight and positions light ahead of key macro events.

Support Levels: 24600-24400     

Resistance Levels: 25000-25200

Overall Bias: Sideways

Bank Nifty

The Bank Nifty index closed at 55,749.70, registering a 0.63% gain from the previous week's close. The weekly chart indicates buying from lower levels; notably, the index has managed to hold above the crucial 55,700 mark. This buying interest suggests a potential continuation of bullish sentiment, with strong demand emerging on dips, pointing to a sideways to bullish phase in the near term.

This week, the Bank Nifty index formed a small-bodied bullish candle with a lower wick, supported by consistent trading volumes. This indicates buying at lower levels and the possibility of a further continuation in the uptrend. The candlestick pattern reflects growing interest among market participants and suggests a likely sideways to bullish phase in the near term. A "buy on dips" strategy is recommended as long as the index holds above 54,500, with higher targets placed at 56,000 and 56,500.

On the weekly timeframe, Bank Nifty is trading above all its key moving averages, including the short-term 20-day, medium-term 50-day, and long-term 200-day Exponential Moving Averages (EMA). This indicates an overall upward trend, and buying at lower levels suggests that a sideways to bullish phase is underway. The index has managed to hold at higher levels, with downside support near the 55,000–54,500 range. The Relative Strength Index (RSI) stands at 65.47, indicating a mildly bullish bias. However, the ongoing sideways movement points to a consolidation phase, which could potentially lead to either a time-wise or price-wise correction as the index awaits fresh cues for its next directional move.

The Bank Nifty index is likely to face significant resistance in the 56,000–56,500 range. If the index continues to move higher, HDFCBANK from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBIN, BANKBARODA & BANKINDIA is anticipated to show strength.

For the ongoing expiry, put options show the highest open interest concentration near 55,000 and 54,500, marking these as key support levels. Conversely, significant call option open interest at 56,000 and 56,500 indicates potential resistance, suggesting a likely trading range of 54,500–56,500 in the upcoming sessions. Traders are advised to remain cautious, adopt a "buy on dips" approach, and maintain strict stop-loss levels to manage risks effectively amid ongoing market volatility and potential price fluctuations.

Support: 55000-54500

Resistance: 56000-56500

Bias- Sideways to Bullish

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