- Nifty opened with a gap-up of 189 points at 24,572.70 on Monday, reflecting strong buying sentiment after the previous week's recovery.
- Monday's bullish momentum helped the index register its weekly high of 24,774.30.
- Tuesday saw a cautious start with a 71-point gap-down, but buying interest emerged near 24,500.
- Nifty traded in a narrow range between 24,500 and 24,650 for the remaining sessions, closing the week at 24,570.65, up 187.05 points (+0.77%).
- Nifty ended Friday lower by 65 points (0.3%) at 24,570, failing to sustain early recovery.
- Analysts see a positive bias for next week but expect choppy trade with support at 24,400-24,350 and resistance at 24,700-24,800.
- The underlying trend for the Nifty remains choppy with a weak bias, according to Nagaraj Shetti of HDFC Securities.
- Immediate support for the Nifty is placed in the 24,450-24,350 band, followed by stronger support at the psychological level of 24,000.
- The index has remained in a consolidation phase between 24,400 and 24,700 over the past three trading sessions, forming lower highs and higher lows.
- The primary trend remains bullish as the index continues to trade above all key moving averages.
Choppy trade continued on Dalal Street, with the Nifty 50 closing at 24,570, down 65 points or 0.3%. Analysts foresee a positive bias for the index next week, buoyed by strong domestic fundamentals and easing geopolitical tensions.
Siddhartha Khemka of Motilal Oswal noted, "Indian equities are likely to trade with a positive bias next week..." However, Nagaraj Shetti of HDFC Securities cautioned that the Nifty's underlying trend remains choppy with a weak bias.
Immediate support is identified at 24,400-24,350, while resistance is seen at 24,700-24,800. The index has been consolidating between these levels, forming lower highs and higher lows, indicating indecision among traders.8
The Nifty's recent performance reflects a phase of consolidation, with the Weekly RSI at 54.18, suggesting potential for further upside if it breaks above the immediate resistance zone. "Any weakness down to this support could be a buying opportunity," Shetti added.
Despite the recent range-bound movement, the index remains above key moving averages, indicating that buyers are still in control. Traders are advised to adopt a buy-on-dips approach while focusing on fundamentally strong stocks.
Overall, the market is in a wait-and-see mode, with fresh triggers needed for a decisive move.
“The index closed the week at 24,570.65, up 0.77%, but formed a Doji candle on the weekly chart, indicating indecision. India VIX ended flat at 12.16, below the 14 zone, signalling stability that supports bulls.”
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