Nifty: Nifty likely to consolidate with key support at 24,500: Analysts

The market is expected to consolidate this week, with the Nifty likely to find immediate support around 24,500. A break below this level could lead to a decline toward 24,100, while a decisive move above 25,200 may reignite bullish momentum and potentially drive the index toward 25,600, according to technical analysts. Stocks such as HDFC Life, Apollo Hospitals, Axis Bank, BPCL, GAIL, SBI, Tata Chemicals, Hindustan Copper, ICICI Bank, and Kotak Mahindra Bank are expected to exhibit bullish momentum and present short-term trading opportunities.

RAJESH PALVIYA

HEAD – TECHNICAL & DERIVATIVES, AXIS SECURITIES

Where is Nifty headed this week?
On the weekly chart, Nifty has formed a small bearish candle with a long lower shadow, indicating buying interest near the 20-week simple moving average (SMA), currently at 24,554. This suggests that despite intraday selling pressure during the week, buyers were active at lower levels, supporting the index. Nifty is now approaching a crucial resistance zone between 25,000 and 25,200. A sustained breakout above this range could lead to a further upside toward 25,500. However, if the index fails to hold above 24,600 and decisively breaks below 24,400—the recent swing low from the past two weeks—it may trigger profi t booking and drag the index lower toward 24,200. Given this setup, we expect Nifty to trade within 25,500–24,200 range in the near term, reflecting a mixed and cautious bias.

Trading Strategies for the Week
Traders should remain selective and cautious while closely monitoring key levels for directional cues. Sectorally, relative strength is observed in chemicals, capital goods, metals, real estate, and banking & fi nancial services. These sectors are likely to show resilience and potential outperformance in the coming week. Within these spaces, stocks such as Tata Chemicals, SRF, ABB, Tata Steel, Hindustan Copper, DLF, Lodha, Cyient, ICICI Bank, and Kotak Mahindra Bank are expected to exhibit bullish momentum, and may be considered for short-term trading opportunities

AJIT MISHRA
SVP – RESEARCH, RELIGARE BROKING

Where is Nifty headed this week?
Nifty’s inability to sustain levels above 25,200 indicates that the index is in a consolidation phase, with immediate support around 24,500— near its 20-day exponential moving average (EMA). A breach below this level could lead to further downside toward 24,100, potentially derailing the prevailing positive trend. On the upside, a decisive breakout above 25,200 could reignite bullish momentum and open the path toward the 25,600 level. The banking index holds the key to the next directional move in Nifty. The index has been consolidating within a tight range for over a month while consistently holding above its short-term moving average support of 20-day EMA.

Trading Strategies for the Week
We recommend maintaining a positive bias unless Nifty decisively breaks below 24,500, with continued emphasis on stock selection. In addition to banking and fi nancials, preference should be given to sectors such as energy, metals, and realty, while remaining selective in others. Traders must maintain strict stop-loss levels and be prepared for heightened volatility. Staying updated on global developments and key domestic policy announcements will be crucial for navigating Stocks to considered for short-term trading opportunities: Bullish: Apollo Hospitals, Axis Bank, BPCL, GAIL, SBI Life, SBI, NMDC, and HDFC Life. Bearish: Biocon, Colgate-Palmolive, Glenmark, Jubilant Food, MGL and PFC.

ROHAN SHAH
TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENT

Where is Nifty headed this week?
Nifty remained volatile over the past week, closing marginally below the 25,000 mark. However, the index sustained its signifi cant support zone at 24,400, aligning with the potential reversal zone (PRZ) of the reciprocal ABCD harmonic pattern and the 20-day EMA, while continuing its higher-high and higher-low formation sequence. Thus, if the index holds above 24,400, Nifty is expected to scale higher toward 25,250–25,800. Failure to defend 24,400 would trigger a decline toward the 23,800 level.

Trading Strategies for the Week
Insurance stocks have displayed strong traction with promising price action. We like HDFC Life, ICICI Prudential Life, and LIC. Additionally, we remain constructive in the realty, metal, and PSU bank sectors. Moreover, selective stocks like Voltas, GAIL, NMDC, and Indian Hotels showcase positive price action; momentum traders could keep these stocks on the watchlist for trading opportunities.