After a six-week decline, Nifty 50 showed positive signs, facing resistance at 24,800 and support at 24,200. Analysts predict a 24,200-24,800 range in the near term, with a potential rally towards 28,000 based on Elliott Wave Theory. Experts suggest accumulating quality large-caps in sectors like defence, pharma, and autos, highlighting stocks like L&T and Reliance.
Nifty 50 ended the week on a positive note after six consecutive weeks of fall, sparking cautious optimism. The index now faces resistance around the 24,800 level, while strong support lies near its 200-day exponential moving average (DEMA) at 24,200. Analysts expect the Nifty to trade broadly within the 24,200- 24,800 range in the near term.
HEAD – ALTERNATE RESEARCH, MIRAE ASSET SHAREKHAN
Despite short-term selling pressure, the medium-term trend remains constructive. The index is hovering close to two crucial support levels — the 200-day EMA at 24,215 and the 40-week EMA at 24,209. Based on Elliott Wave Theory, Nifty appears to have completed its corrective wave 4 phase and has entered wave 5, an upward leg confi rmed by a strong quarterly close in June 2025. This sets up the index for a potential rally towards 28,000 and beyond.
Trading Strategies for this Week: The correction presents an opportunity to accumulate quality large-caps. Investors should build exposure in defence, pharmaceuticals, capital goods, and automobiles . Stocks such as L&T, SBI, Reliance Industries, Hindustan Unilever, UltraTech Cement, Cipla, and Hero MotoCorp stand out as strong candidates.
HEAD OF RESEARCH – TECHNICAL & DERIVATIVES, ANGEL ONE
Nifty is currently at a key confluence zone between 24,400 and 24,100, marked by the 200day SMA and earlier FIIs’ Index Long-Short Ratio remains below 10 — historically an oversold zone. As long as Nifty holds above 24,000, there is no immediate cause for concern. On the upside, reclaiming the 20-DEMA at 24,750 would be the first sign of strength, opening the way to 25,000-25,250.
Trading Strategies for this Week: Auto, pharma, and FMCG expected to outperform in near term. Bank Nifty faces a make-orbreak level at 55,000. A breakout above 55,800 could trigger strong buying , lifting broader market higher.
DERIVATIVES ANALYST, SAMCO SECURITIES
On weekly chart, a potential Bullish Harami candlestick has emerged, hinting at early signs of optimism. 24,600 is the most active strike, with aggressive call writing at 24,700 reinforcing resistance. Heavy Put positions at 24,600 provides near-term support. FPIs remain heavily short.
Trading Strategies for the Week Range-trading strategies remain preferable until clarity emerges. Sectors showing resilience include autos, consumer durables, cement, and insurance. Stock-specific opportunities are visible in Maruti Suzuki, HDFC Life Insurance, UltraTech Cement, and UNO Minda.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
