Nifty eyes further upside, potentially crossing 25,450-25,500, with banking and consumption stocks showing promise. Analysts suggest Nifty should sustain above 24,900, while a move past 25,440 could target 25,700. Investors are advised to look for opportunities in sectors like banking, auto, metal, and consumption.
Benchmark Nifty can see further upside if the bullish momentum drives the index past 25,450-25,500 levels. Banking and consumption stocks look promising and could offer better opportunities in the near term, analysts said. On the downside, Nifty is expected to sustain above 24,900 this week.
PRITESH MEHTA
EXECUTIVE VICE PRESIDENT – RESEARCH, YES SECURITIES
Where is Nifty headed this week?
The base of the index continues to shift higher, with immediate support around the 24,900 zone. This month, both the Financial Services and Bank Nifty indices have played a key role in driving the recent upmove. Relative strengths indicate potential outperformance. For the Nifty, a move above 25,440 would trigger a double-top buy signal, opening up the possibility of an upward move towards the next three-digit Gann number of 25,700 in the coming weeks.
What should investors do?
The Consumer Discretionary vs FMCG ratio chart has broken out after nearly two years of consolidation, signaling renewed strength and potential outperformance of discretionary names over the defensives. Our customised Tyres Index has also given a base breakout, indicating potential upside of 10-12% in Ceat and Apollo Tyres. In the financial space, the Bank Nifty has staged a bullish turtle breakout on the Point & Figure chart, with a follow-through to a bullish anchor column. The projection suggests a move towards 58,000. Within the banking space, Axis Bank, Kotak Bank, and Bank of Baroda are expected to outperform.
RUCHIT JAIN
HEAD TECHNICAL RESEARCH, MOTILAL OSWAL FINANCIAL SERVICES
Where is Nifty headed this week?
Nifty has consolidated in a broad range of 1,000 points over the last few months, which seems to be a time-wise corrective phase. However, the Bank Nifty seems to have taken the leadership this time and has started showing relative outperformance. Thus, the near-term trend for Nifty appears sideways, with immediate hurdles seen in 25,400-25,500 range, and support at 24,900-24,800. A breakout above this range is required for a resumption of the positive trend. Index traders can look for buying opportunities in Bank Nifty on declines, as it has given a breakout from an ‘Inverted Head and Shoulders’ pattern, implying a positive trend. Support for the banking index is placed at 56,000-55,800, and any dips towards this range can be viewed as buying opportunities.
What should investors do?
Among sectoral indices, the Nifty PSU Bank index has outperformed and could continue to do so. Traders can look to buy stocks such as SBI, which is leading the momentum, and Punjab National Bank, which has given a breakout from a ‘Cup and Handle’ pattern on weekly chart. L&T is on the verge of a breakout from a significant consolidation, and CDSL looks bullish from a positional perspective.
RUPAK DE
SENIOR TECHNICAL ANALYST, LKP SECURITIES
Where is Nifty headed this week?
Nifty posted two consecutive green candles on daily timeframe, indicating renewed buying interest from strong hands. The recent consolidation breakout has added momentum as the bulls begin to regain control. A hidden positive divergence in the daily RSI (14) has also provided support for the ongoing rally. However, the index is not yet out of the woods, as it continues to trade below the previous swing low, which could act as a crucial resistance level. Notably, Nifty has closed in the green in six out of the last seven sessions, clearly reflecting bullish dominance in the market. Additionally, a series of higher bottoms further underscores the improving buying sentiment. The next few days could be interesting as the bulls may attempt to push the index towards the 25,500-25,550 zone. It will be worth watching whether the bears can halt the advance around this level. If Nifty manages to move above 25,550, the next potential target could be around 25,850.
Trading strategies for the week:
As long as the index sustains above 25,000, the market may continue to offer buying opportunities. Sectoral plays such as banking, auto, metal, and consumption-themed stocks could deliver strong gains. Stocks such as Mahindra & Mahindra, Federal Bank, State Bank of India, Swiggy, and InterGlobe Aviation (IndiGo) may experience significant buying interest.
