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Weekly Technical Outlook and Picks

Nifty 50 Index

* Nifty started the week on a flat note and witnessed selling pressure throughout the week, dragging the index to close at its lowest point. Nifty closed at 24,363 on Friday, down 202 points for the week.

* On the weekly chart, the index has formed a long bearish candle with a lower high–low and closed below the prior week’s low, indicating a continuation of the prevailing profitbooking trend.

* It is now approaching a crucial support zone, which comprises the bullish gap area between 24,378 and 24,164, the 200-day SMA placed at 24,043, and the swing low of 9 th May, around 23,935. On the upside, a close above the 20- day SMA, currently placed at 24,875, is essential to signal a potential reversal in trend.

* A sustained move above 24,500 could trigger buying towards 24,700–25,000, while a break below 24,300 may lead to further downside towards 24,150–23,900

* For the week, we expect Nifty to trade within the range of 25,000-23,900 with a negative bias.

* The weekly strength indicator RSI is moving downwards and is quoting below its reference line, indicating a negative bias.

Bank Nifty Index

* Bank Nifty opened the week on a negative footing and extended its prior week's downward momentum, ending the week lower. The index closed at 55,005, declining 613 points for the week.

* On the weekly chart, it formed a long bearish candle, marking a lower high– low and closed below the previous week’s low—signalling sustained weakness at current levels.

* The price action reflects the dominance of bears, with no meaningful recovery seen during the week.

* From a technical perspective, a sustained move above 55,650 could trigger a short-term rebound towards 56,000–56,300. However, a break below 54,500 may accelerate selling pressure, dragging the index towards 54,000–53,500.

* For the week ahead, we expect Bank Nifty to trade in a broad range of 56,300–53,500 with a negative bias.

* The weekly RSI continues to remain in negative terrain and is positioned below its reference line, further reinforcing the bearish sentiment.

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