The Nifty is expected to continue its bullish trend, potentially reaching all-time highs of 26,000-26,200 after breaking out of a consolidation phase. Analysts suggest a ‘buy-on-dips’ strategy, favoring sectors like banking, financials, and auto. Key support lies around 25,200, with potential resistance at 25,800, indicating a positive outlook for the market this week.The market is expected to maintain its bullish momentum this week, having broken out of a consolidation phase. According to technical analysts, the Nifty could gradually move towards its all-time high levels of 26,000-26,200, with initial resistance seen at 25,800. The 25,200 zone is now likely to act as a support base.
RAJESH PALVIYA
HEAD – TECHNICAL AND DERIVATIVES RESEARCH, AXIS SECURITIES
Where is Nifty Headed This Week?
The Nifty closed above the previous week’s peak, indicating powerful upward momentum. Having broken free from its earlier trading range of 24,400-25,200, the index’s recent close above 25,200 suggests potential for further advances. Nifty could soon test its record high of 26,277, and if it surpasses 25,800, we may see fresh buying interest that could drive it toward the 26,000-26,250 range. On the downside, a drop below 25,500 could result in retreating to 25,200-25,000 zone. The consistent rise in both daily and weekly RSI, remaining solidly above key thresholds, further emphasises the prevailing bullish sentiment.
Trading Strategies for the Week
Traders can initiate a moderately bullish strategy with reduced premium outflow and a lower breakeven point called a ‘Bull Call Spread’ of 3rd July weekly expiry. In this net delta long strategy, traders need to buy one lot of the 25,700 Call strike at Rs 117 and simultaneously sell one lot of the 26,000 Call strike at Rs 29, so that the net outflow or maximum loss will be restricted to up to Rs 6,600. Nifty, on expiry, if it closes above 25,788, the strategy will start making a profit as it’s the break-even point for the strategy.
However, as the risk is limited, so is the profit. The maximum gains will be restricted to Rs 15,900, because the gains of a long 25,700 strike Call will be offset by the sold 26,000 strike Call if Nifty closes above 26,000 on expiry. Investors can focus on stocks like Bajaj Auto, Reliance, Hindustan Petroleum, Titan, Eicher Motors, Sun Pharma, Hindalco, and IndusInd Bank for potential opportunities.
ROHAN SHAH
TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT
Where is Nifty Headed This Week?
Nifty finally broke out of the consolidation range of 24,400-25,200, which persisted for over a month. The recent rally was driven by heavyweights such as the Banking index, Reliance Industries, and Bharti Airtel, supported by broad market participation. Going ahead, we expect the index to challenge its previous record high levels and advance towards the 26,000-26,200 zone. On the downside, 25,200 now acts as an important intermediate support, followed by 24,800.
Trading Strategies for the Week
We remain optimistic on power stocks like Power Grid and Tata Power. The FMCG index also looks good as it has rebounded from crucial support; Hindustan Unilever and Nestlé are among the preferred picks. Realty stocks, after decent moves, are now showing signs of profi t booking. Select stocks like Bharat Forge, Hero MotoCorp, and Torrent Pharma are exhibiting strength on the charts and should be kept on the watchlist for trading
AJIT MISHRA
SVP – RESEARCH, RELIGARE BROKING
Where is Nifty Headed in the Coming Week?
With the Nifty ending its consolidation phase through a decisive breakout, we now expect a gradual move toward the all-time high of 26,277. However, the gap area around 25,800 could cause a temporary pause. In the event of a pullback, the 24,800-25,200 zone — which previously acted as resistance — is likely to offer strong support.
Trading Strategies for the Week
Participants are advised to maintain a ‘buy-on-dips’ strategy with an emphasis on selective stock picking. We continue to favour rate-sensitive sectors such as banking, financials, auto, and real estate, while recommending a cautious and selective stance toward other sectors. Based on the current technical setup, the following stocks can be considered for short-term trading opportunities: Apollo Hospitals, Shriram Finance, UNO Minda, Hero MotoCorp, Hindustan Petroleum, ICICI Prudential Life, InterGlobe Aviation, Jubilant FoodWorks, Laurus Labs, UltraTech Cement, and Vedanta
