Improving sentiment may take Nifty towards 25,500: Analysts

Nifty 50 reclaimed the 25,000 mark last week. Technical analysts indicate that market sentiment and the index are showing signs of gradually moving towards 25,500. On the downside, immediate supports are between 24,900 and 24,700. Analysts expect banks, financials, autos, consumption themes, and metals to outperform.

DHARMESH SHAH
VICE PRESIDENT, HEAD OF TECHNICALS, ICICI SECURITIES

Where is Nifty headed this week?
The formation of higher-highs and higher-lows, supported by improving market breadth, gives us confidence that Nifty will experience a decisive breakout from the contracting triangle (25,100–24,400) and gradually move towards 25,500 in the coming weeks. Key heavyweights such as Bank Nifty and IT, which together make up 45% of Nifty’s weight, are preparing for the next leg of the uptrend, which could push Nifty higher.

Trading strategy for the week:

Any decline should be used as a buying opportunity, with immediate support at 24,700. Sectorally, BFSI, auto, consumption, and metals are expected to outperform, while beaten-down sectors such as IT, capital goods, infra, and PSUs offer bargain-buying opportunities. On the stock front, largecaps like SBI, Axis Bank, TCS, Maruti Suzuki India, Bharat Electronics, Ambuja Cement, L&T, and Tata Steel are poised for ~5% upside. In the mid-cap space, Railtel Corporation, Persistent Systems, Sagar Cements, Exide Industries, City Union Bank, Apollo Tyres, KEC International, Chalet Hotels, and Astra Microwave Products look good for 8% gains.

Agencies

TANMAY SHAH
RESEARCH HEAD, SIHL

Where is Nifty headed this week?

The market appears poised for a fresh rally, with 24,700 as strong support. This week, the index is likely to advance towards 25,525, and a sustained close above this level could pave the way for new all-time highs.

Trading strategy for the week:
Any near-term correction should be seen as a buying opportunity with a focus on quality stocks for medium- to longterm. Sectors poised to benefit include banking & finance, FMCG, auto, and insurance. Among largecaps, ICICI Bank, HDFC Life Insurance, Nestlé India, and TVS look attractive. In the mid-cap space, Marico, Indian Bank, and LIC Housing Finance stand out, while City Union Bank and Bikaji Foods International offer potential among small-caps.

SUDEEP SHAH
HEAD, TECHNICAL & DERIVATIVE RESEARCH DESK, SBI SECURITIES

Where is Nifty headed this week?
On charts, Nifty is at a critical juncture. It is on the verge of breaking out from a Symmetrical Triangle pattern on daily time frame—a setup that typically precedes a sharp directional move. The index is trading above both short-term and longterm moving averages, which have started sloping upwards—a bullish sign. Market breadth has improved significantly, 82% of Nifty stocks are above their 20-day EMA, and 76% are above their 50-day EMA, reflecting broadbased participation.

Key levels to watch: 25,150–25,200 zone will act as near-term resistance. A sustained move above 25,200 could trigger a sharp rally towards 25,500 and eventually 25,700, in the short term. On the downside, the 24,950–24,900 zone is expected to provide strong support.

Trading strategy for the week:
The ongoing rally is being supported by strong moves in defence, public sector, and IT stocks, which are showing signs of a potential trend reversal. Additionally, metals, financials, pharma, healthcare, automobiles, and consumer durables are also showing sustained strength. A stock-specific approach is key. Picks include Hindustan Aeronautics, Bharat Electronics, BEML, Dr. Reddy’s, Bajaj Finance, Bajaj Finserv, National Aluminium, Hindalco, and L&T