IGI Logo

NIFTY WEEKLY OUTLOOK

Indian equity benchmarks ended the week under pressure as persistent selling wiped out the gains of the previous four sessions. The Nifty 50 closed at 24,870.10, losing 213 points (-0.85%), while the Sensex slipped 693.86 points (-0.85%) to settle at 81,306.85. On the weekly chart, Nifty formed an inverted hammer, a bearish signal indicating sustained selling pressure at higher levels. Despite briefly reclaiming the 25,100 mark during the week, the overall tone remained cautious as investors preferred to book profits amid heightened volatility.

From a technical standpoint, Nifty is currently hovering around its short-term support at 24,840, which coincides with the 50-day EMA. A decisive breakdown below this level could open the way for further declines toward 24,650, where a recent gap is placed, and subsequently to 24,500, which serves as a broader support zone. On the upside, the index faces resistance in the 25,150–25,350 band. A strong close above this zone could shift market momentum in favor of the bulls and trigger a fresh rally.

Momentum indicators, however, suggest weakness. The Relative Strength Index (RSI) has slipped to 50.59 and is trending downward, reflecting declining momentum. Additionally, Nifty retraced to the 61.8% Fibonacci level of its previous fall at 25,160 but failed to sustain above it, reversing sharply and closing negative. On the derivatives front, heavy Call Open Interest (OI) at 24,900–25,000 is likely to act as a strong cap on the upside, while Put OI at 24,800 may offer near-term support.

In summary, the broader setup remains cautiously bearish to sideways, with the index trapped between crucial support and resistance levels. A breakout above 25,160 could spark momentum buying, lifting the index toward 25,350 and beyond. Conversely, a breakdown below 24,840 may invite fresh selling pressure, dragging it lower to 24,650–24,500. Until either side is decisively breached, the market outlook remains sideways to bearish. Investors are advised to adopt a cautious stance and closely track both global and domestic triggers to navigate the prevailing volatility effectively.

BANK NIFTY WEEKLY OUTLOOK

Bank Nifty ended lower on Friday, closing near 55,149 after facing resistance and rejection in the 56,000–56,160 zone, highlighting strong selling pressure. The index broke down from its recent range-bound movement, filled a gap on down side, and wiped out more than 800 points of weekly gains. A strong bearish candle formed on the daily chart, closing below the key support level of 55,500, which reinforced the prevailing downside momentum. If this selling pressure continues and the index breaks below 55,000, it could trigger a deeper corrective move toward 54,900 (20-week EMA) and 54,450. On the upside, immediate resistance is seen around 55,500. A sustained breakout above this level could attract fresh buying, with potential targets at 55,750 and 56,000.

 Technical indicators also support a bearish outlook. The RSI is currently around 40.52 and trending downward, signaling continued weakness. Additionally, Bank Nifty has closed below both the 20-day EMA and the 50-day EMA on the daily chart, further underscoring bearish sentiment.

Given the current price action and uncertain momentum, traders are advised to remain cautious and maintain strict risk management. A decisive close above the 56,160 resistance or a breakdown below the 55,000 support will be crucial in determining the next significant directional move in Bank Nifty.

Support: 55000-54450

Resistance: 55500-56000

Bias- Sideways to Bearish

For Detailed Report With Disclaimer Visit. https://choicebroking.in/disclaimer

SEBI Registration no.: INZ 000160131