Buy or Sell: The Indian stock market saw significant activity this week, driven by the US Federal Reserve’s decision to cut interest rates by a quarter of a percentage point, marking the third cut this year. However, Fed Chairman Jerome Powell’s indication that there would be only two quarter-point cuts in 2025 dampened market optimism. Expectations of limited interest rate cuts and persistent inflation caused a market correction of 3-5% on all indices this week.
The Nifty 50 index showed technical resilience, supported by the formation of an inverse head and shoulders pattern, with a neckline at 24,200 targeting the 25,000 – 25,300 zone. The index reached 24,950 before posting gains at the end of the week.
Throughout the week, the Nifty 50 traded within a volatile range of 23,500 – 25,000 with sectoral profit booking dominating. Current Nifty Open Interest (OI) data shows that the index is in the oversold zone at 0.75, indicating a possible short covering if the index remains above 23,300-23,500 during monthly expiration.
A range of 23,300 – 24,500 is expected for the coming week, with any breakout potentially signaling a new trend towards 24,000 – 24,200 for a monthly expiration, and any breakout above the 23,300 – 24,500 level potentially signaling a new trend.
Smart performance from the bank
The Bank Nifty index reflected the Nifty’s volatility, with heavy profit booking and a steep 5% decline of nearly 3,000 points to close at 50,700. Despite a positive start on Monday, consistent selling pushed the Bank Nifty index lower, testing resistance at 54,000 and hitting a low at 50,800.
For the coming sessions, support is observed at 49,500, while resistance is at 52,000. Sustained movements within this range will determine the short-term direction.
Conclusion
Both the Nifty 50 and Bank Nifty indices have closed below their respective weekly support zones and are maintaining a generally bearish bias. 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. Amber Enterprises India | Buy from ₹6,100 – 6,130 | Target price: ₹6,500 | Stop Loss: ₹5,750
2.RCF | Buy from ₹168 – 172 | Target price: ₹185 | Stop Loss: ₹160
3. Godrej Industries | Buy from ₹1,100 – 1,120 | Target price: ₹1,175 | Stop Loss: ₹1,070
Disclaimer: The views and recommendations expressed above are those of individual analysts or brokerage firms, and not of Mint. We advise investors to contact certified experts before making investment decisions.
