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NIFTY WEEKLY OUTLOOK 07-08-2026

The Nifty index started the week on a positive note, opening with a gap-up of 189 points at 24,572.70, reflecting strong buying sentiment after the previous week's recovery. The bullish momentum continued throughout Monday's session, resulting in a strong bullish candle on the daily chart and helping the index register its weekly high of 24,774.30. However, Tuesday witnessed a cautious start as the index opened with a 71-point gap-down and ended the session in the red. Despite the weakness, buying interest emerged near the 24,500 zone, leading to the formation of a long lower wick on the daily candle, highlighting the presence of buyers at lower levels. During the remaining three trading sessions, Nifty lacked any clear directional momentum and traded in a narrow range between 24,500 and 24,650, eventually closing the week at 24,570.65, up 187.05 points (+0.77%).

The weekly price action reflects a phase of consolidation after the recent recovery, with the formation of a Doji candle on the weekly chart, indicating indecision between bulls and bears. While buyers managed to defend lower levels around 24,500, the inability to sustain above the 24,650–24,750 zone suggests that the market is awaiting fresh triggers before making its next directional move. The ongoing consolidation near higher levels continues to indicate a healthy pause within the prevailing recovery structure rather than a reversal of trend.

Sector-wise, market performance remained mixed, with buying interest largely concentrated in few sectors. Nifty Auto, Nifty IT, Nifty Metal and Nifty PSU Bank emerged as the strongest performers, supported by sustained buying momentum and improving investor sentiment. On the other hand, Nifty 

Private Bank, Nifty Realty and Nifty Financial Services witnessed profit booking and underperformed the broader market, reflecting a cautious undertone in financial and real estate stocks. Overall, sectoral rotation remained evident, with investors favouring cyclical and technology-driven sectors over rate-sensitive segments.

From a technical perspective, the broader structure remains constructive as Nifty continues to trade above all the key weekly exponential moving averages, reinforcing the strength of the medium-to-long-term trend. The index is comfortably sustaining above the 20-week, 50-week, 100-week and 200-week EMAs, indicating that buyers continue to maintain control despite the recent range-bound movement. The Weekly RSI stands at 54.18, remaining above the neutral 50 mark and signalling improving momentum with scope for further upside if the index manages to break above the immediate resistance zone.

The overall chart structure continues to favour a positive bias, although the ongoing consolidation suggests that a decisive breakout is still awaited. 24,900–25,000 is expected to act as the immediate resistance zone, while 24,100–24,200 remains the key support area. As long as the index sustains above this support zone, the broader recovery structure is likely to remain intact. Traders are advised to adopt a buy-on-dips approach while maintaining disciplined risk management and focusing on fundamentally and technically strong stocks.

Support Levels :- 24,200 - 24,000

Resistance Levels :- 24,900 - 25,100

Overall Bias :- Sideways to Bullish

BANKNIFTY WEEKLY OUTLOOK 07-08-2026

Bank Nifty started the week on a positive note, opening at 57,569.60 and witnessing a gap-up at the start of Monday's session. The index found immediate support near the 57,500 zone and extended its gains, forming a strong bullish daily candle while decisively closing above the crucial 58,000 mark. However, the momentum faded in the second trading session as the index failed to sustain at higher levels and slipped lower amid profit booking. Buying interest once again emerged around the 57,500 support zone, helping the index recover from intraday lows. During the remaining three trading sessions, Bank Nifty lacked any clear directional momentum and traded in a narrow range between 57,500 and 58,000. The index touched a weekly high of 58,247.95, recorded a low of 57,352.65, and finally settled at 57,746.45, gaining 481.60 points (+0.84%) for the week.

The weekly price action reflects a phase of consolidation after the recent recovery, with buyers repeatedly defending the 57,500 support zone while sellers remained active near the 58,000 resistance area. The inability to sustain above higher levels despite multiple attempts indicates that bullish momentum has slowed in the near term. Nevertheless, the index's resilience around support levels suggests that market participants continue to adopt a buy-on-dips approach, keeping the broader recovery structure intact.

From a technical perspective, Bank Nifty took support near the 20-day EMA twice during the week, highlighting the importance of this dynamic support level. On the weekly chart, the index continues to trade comfortably above all the key exponential moving averages, indicating that the broader medium-to-long-term trend remains constructive. However, the weekly candle is not particularly strong despite closing in positive territory, as the formation of a long upper wick reflects selling pressure emerging at higher levels.

The Weekly RSI stands at 54.32, remaining above the neutral 50 mark, indicating that momentum continues to favour the bulls despite the ongoing consolidation.

The overall chart structure continues to remain positive, although the index is currently consolidating within a well-defined range. 58,700–59,000 is expected to act as the immediate resistance zone, while 56,700–57,000 remains the key support area. A decisive breakout above the resistance band could trigger fresh buying momentum and pave the way for further upside, whereas holding above the support zone will be crucial to maintain the prevailing positive structure. Traders are advised to adopt a buy-on-dips approach while maintaining disciplined risk management and focusing on fundamentally and technically strong banking stocks.

Support: 56,700–57,000

Resistance: 58,700–59,000

Overall Bias: Sideways to Bullish

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