Technical Research : Weekly technical note by Emkay Global Financial Services
Nifty has reversed sharply from the 24,600 resistance zone and broke down from its ascending triangle – a bearish continuation signal. The index is likely to remain under pressure below the 24,200–24,400 band, with a break under 23,600 opening room toward 23,100–23,300. Midcap 150 is seeing an intermediate correction within an intact uptrend, making dips toward 22,400– 22,700 – a buy-on-dips opportunity. Smallcap 250 continues to outperform and is testing resistance at 18,600 (support at 18,100, then 17,500). By sector, Oil and Gas, PSE, Realty, and PSU-linked pockets led gains, while Auto, Media, Consumer, and Metal lagged. Among stocks, we like AJANTPHARMA, GRANULES, and AIAENG on the long side and PGEL/TIIND as shorts, with favorable riskreward across the board.
Index view
* Nifty: Bearish – reversed from 24,600 resistance, broke ascending triangle. Resistance – 24,200–24,400 | Downside trigger – below 23,600 | Support – 23,100– 23,300
* Nifty Midcap 150: Buy-on-dips – intermediate correction within intact uptrend. Support – 22,400–22,700
* Nifty Smallcap 250: Outperformer – testing resistance at 18,600 | Support at 18,100, then 17,500
Sector snapshot (weekly returns)
* Gainers: Crude Oil +8.2%; Nifty Oil & Gas +1.4%; CPSE +0.7%; Nifty Realty +0.7%; Nifty PVT Bank +0.5%
* Laggards: Nifty Auto -3.9%; Nifty Media -2.9%; Nifty Consumer -2.8%; Nifty MNC -2.8%; Nifty Metal -2.8%
Stock ideas
* AJANTPHARMA: Buy 3,585–3,500 | SL 3,420 | TGT 3,950
* GRANULES: Buy 882–850 | SL 820 | TGT 970
* AIAENG: Buy 4,255–4,170 | SL 4,060 | TGT 4,800
* CPPLUS: Buy 3,794–3,670 | SL 3,540 | TGT 4,360
* PGEL: (Short) | Entry 553 | SL 563 | TGT 533
* TIIND: (Short) | Entry 2,640 | SL 2,720 | TGT 2,480
Nifty technical outlook
The index reversed sharply from the crucial resistance zone of 24,600, subsequently breaking down from its ascending triangle formation — a classic bearish continuation signal. This breakdown reinforces the negative undertone in the near term.
Resistance band: 24,200–24,400 — the index is likely to remain under pressure as long as it trades below this zone.
Downside trigger: A decisive move below 23,600 would aggravate selling pressure, opening the door for a slide toward the 23,100–23,300 support band.
Nifty Midcap 150
The index is undergoing an intermediate correction within an overall bullish structure, keeping the larger uptrend intact. Key support lies in the 22,400–22,700 band, which should attract fresh buying interest. View: Buy-on-dips setup — the broader trend remains constructive, and dips toward the support band offer accumulation opportunities.
Nifty Smallcap 250
The Smallcap index continues to outperform other strategic indices, reflecting relative strength. It is currently testing resistance at the 18,600 level, with the broader trend remaining bullish. A decisive move above 18,600 would trigger further upside momentum. Key support: 18,100, followed by 17,500.
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