Weekly Outlook on Nifty and Bank Nifty by Hardik Matalia, Derivative Analyst - Research at Choice Equity Broking Private Limited
The Nifty index ended the week on a flat note, gaining 85 points after a strong upward move. On the weekly timeframe, the index corrected nearly 311 points from its high, making it a volatile session and suggesting a phase of consolidation after recent sharp gains. Nifty witnessed temporary profit booking, slipping below the 25,800 mark and eventually closing at 25,795.15, indicating a pause in momentum as traders booked profits at higher levels.
Currently, Nifty continues to trade above its 20-day, 50-day, and 200-day EMAs, highlighting a strong underlying bullish structure and sustained trend strength. On the weekly timeframe, the RSI stands at 61.60 and is trending sideways, indicating a neutral-to-positive bias with potential for renewed momentum once consolidation ends.
On the downside, a decisive break down below 25,670 could accelerate weakness towards 25,500, and further down to 25,400. Conversely, on the upside, immediate resistance is seen at 25,950, followed by 26,000 and 26,100. A sustained move above these levels would confirm the continuation of the bullish trend, while failure to cross them may keep the short-term trend range-bound.
Given the current market structure, adopting a “buy-on-dips” approach remains favorable. However, traders are advised to stay cautious and maintain strict stop-loss levels to manage risk effectively in this volatile trading environment.
Support: 25500 - 25300
Resistance: 25800-26000
Bias: Sideways to Bullish"
BANKNIFTY WEEKLY OUTLOOK
Bank Nifty ended the week on a flat note, closing at 57,699, after hitting a new lifetime high amid a highly volatile trading week. The index displayed notable strength by surpassing its previous peak of 57,628, but subsequently witnessed a correction of nearly 870 points from the week’s high, indicating profit-taking at higher levels. The slip below the 58,000 mark suggests temporary consolidation or mild profit booking after a strong upward move.
If selling pressure re-emerges and the index decisively breaks below 57,400, it could trigger a further correction towards 56,900 and potentially beyond. On the upside, immediate resistance is seen at 58,000, followed by 58,300 and 58,700.
Technical indicators present a cautiously optimistic outlook. The RSI on the weekly chart, currently at 63.13 and trending sideways, signals a pause in momentum while maintaining bullish undertones. Additionally, the index continues to trade above its 20-day, 50-day, and 200-day EMAs, underlining a structurally positive setup that supports the continuation of the broader uptrend.
A decisive close above 58,000 would reaffirm bullish momentum and open the door for further gains, whereas failure to sustain above this level could invite short-term weakness. Traders are advised to remain constructive yet disciplined, closely monitoring 57,400 on the downside and 58,000 on the upside for cues on the next directional move.
Support: 57400-56900
Resistance: 58000-58700
Bias- Sideways to bullish"
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