The Nifty 50 index concluded the week at 24,965, which is notably above the expected support zone of 24,800 to 24,900. This consistent close above the pivotal support level of 25,700 suggests that the bullish momentum may continue, with resistance levels appearing around 26,700, indicating a potential upward trend in the market.
Market observers are closely monitoring the Nifty 50’s ability to stay above the 25,700 level. If it can maintain this position, it could encourage further upward movement towards the target of 26,500, signaling investor confidence and stability.
Weekly Trading Summary
The week commenced with a gap-down opening on Monday, leading the index to test the support at 25,800. Throughout the week, trading remained within a narrow range of 25,800 to 26,300. Despite being technically in an oversold zone, which typically encourages a rebound, the index encountered challenges in surpassing the immediate resistance at 25,700.
Looking ahead, maintaining a close above 24,800 will be crucial for generating momentum towards the 25,700 mark. Meanwhile, ongoing geopolitical tensions, such as the Israel-Iran conflict, are keeping market sentiment cautious. With the earnings season currently underway on Dalal Street, investors are likely to gravitate toward stock-specific movements and market fluctuations.
Bank Nifty Performance
The Bank Nifty mirrored the Nifty’s trajectory with a gap-down opening at the week’s start, attempting to reach the 52,000 resistance level during the week. However, it retraced some gains and closed below this threshold by the week’s end, reflecting a cautious market response.
From a technical perspective, the Bank Nifty currently appears to be in an oversold condition, with significant support identified in the range of 50,500 to 51,000. Immediate resistance is observed at 52,000 and further up at 53,500. Traders are advised to consider buying on dips within the support zone, particularly as major private banking stocks retain bullish appeal within the indices.
Conclusion
Despite some initial volatility during the week, both the Nifty and Bank Nifty indices have managed to close above their respective monthly support zones, indicating an overall bullish outlook. Investors are encouraged to keep a close eye on critical support and resistance levels as they strategize their trading opportunities in the coming sessions.
Stocks to Buy on Monday
Ganesh Dongre, Senior Manager of Technical Research at Anand Rathi, presents his recommendations for three stocks to consider buying this Monday, October 14.
Buy REC Ltd at ₹538, with a Stoploss at ₹510, aiming for a Target of ₹570.
Buy NMDC at ₹233, setting a Stoploss at ₹215, targeting ₹255.
Buy Jindal Steel & Power at ₹1,005, with a Stoploss at ₹975, aiming for a Target of ₹1,055.
Disclaimer: The views and recommendations provided are those of individual analysts, experts, and brokerage firms, and do not necessarily reflect the opinion of this publication. Investors are urged to consult certified professionals before making any investment decisions.
