Buy or sell: The Nifty index exhibited constrained movement throughout the week, fluctuating within the 23,500–24,200 range. However, a lack of a decisive breakout above the 24,200 level caused the index to retest its support zone of 23,300–23,500. The week closed below this crucial support level, signaling potential weakness.
The week began with a gap-up opening above 24,000, with the index testing resistance at 24,250. However, the inability to secure a close above this level, combined with the formation of a daily lower-high pattern and consistent selling pressure below 24,000, resulted in a close beneath 23,500 on a weekly basis.
Looking ahead to the January series, a sustained bullish trend will require a close above the 24,250 mark. This would pave the way for a move toward the 24,600–24,800 resistance zone. Conversely, a close below 23,300–23,500 may drive the index down to the next support levels at 22,500–22,800. Traders should remain cautious, monitoring upward movements and closing patterns closely in the coming days.
The U.S. presidential transition in mid-January may introduce some market volatility. However, optimism around President-elect Donald Trump’s anticipated policies could lend short-term positive sentiment to the market.
Bank Nifty Performance
The Bank Nifty index began the week on a weak note, trading below the 51,000 mark and closing beneath the support level of 50,500. This weakness was further confirmed as the index saw selling pressure, pushing it toward its support zone of 48,500.
On a weekly note, the Bank Nifty traded within the 48,500–51,000 range. The consistent lower-low closing pattern signals potential further downside. Immediate support for the index lies at 48,500, while resistance for the week is set at 50,500.
Conclusion
Both the Nifty and Bank Nifty indices closed below their respective monthly support zones, signaling potential weakness in the upcoming days. The 24,250 level for Nifty and the 50,500 level for Bank Nifty remain critical for initiating fresh long positions. Investors and traders should stay vigilant around these levels, as they will be pivotal in determining future market directions.
Weekly Stocks
Buy Hindustan Petroleum Corp at ₹388; Stop Loss at ₹375; Target Price of ₹410.
Buy HCL Tech at ₹1995; Stop Loss at ₹1940; Target Price of ₹2060.
Buy Tata Motors at ₹775; Stop Loss at ₹730; Target Price of ₹815.
Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.
