Buy or Sell: The Nifty 50 index closed the week at 24,304, reflecting notable volatility as traders navigated the market dynamics. As the monthly expiration approached, a short covering rally provided a brief reprieve, allowing the index to bounce nearly 500 points and reach nearby resistance levels around the 24,700-24,800 zone.
Weekly trading summary
The week started with a gap-down opening on Monday, which saw the index test the critical support level at 24,000. A subsequent recovery saw the Nifty 50 climb back to the 24,600-24,800 resistance zone, although it eventually faced profit booking, taking it back to around 24,200 points.
Despite several attempts to break the immediate resistance level of 24,600-24,800, the market struggled to maintain upward momentum, resulting in increased profit-taking.
On the daily chart, a head-and-shoulders pattern still indicates potential bearish moves. If the index stays below its neckline in the 24,800-24,900 range, it signals further selling pressure, targeting the lower 23,500-23,800 range. The first support level remains at 24,000; If the Nifty fails to regain the neckline above 24,800, further declines towards the 23,500-23,800 zone could take place.
Immediate resistance is set at 24,800, with support levels at 24,000 and then 23,500 for the coming weeks.
Smart performance from the bank
Reflecting the trend of the broader market, the Bank Nifty opened with a gap lower on Monday. it then made an attempt to rally towards the 52,000 resistance level but ultimately lost these gains and closed back near the 51,000 support zone. A decline below the 52,000 level indicates increasing bearishness, necessitating caution for traders. The upcoming support level for the Bank Nifty is 50,500 and then 49,500.
Conclusion
Both the Nifty 50 and Bank Nifty indices successfully closed above their respective monthly support zones despite initial market volatility, keeping sentiment broadly bullish. Investors are advised to keep a close eye on key support and resistance levels as they evaluate trading opportunities in the coming sessions.
Stocks to buy on Monday
1]Syrma SGS Technology | Buy from ₹499 | Target price: ₹560 | Stop Loss: ₹475
2]RBL Bank | Buy from ₹176 | Target price: ₹185 | Stop Loss: ₹170
Disclaimer: The views and recommendations expressed in this analysis are those of individual analysts or brokerage firms, not Mint. We strongly advise investors to consult certified experts before making any investment decisions as market conditions can change rapidly and individual circumstances may vary.
