Nifty likely to advance towards 25,200-25,800: Analysts

Nifty is expected to extend its upward trajectory in the near term supported by easing geopolitical worries, strong FII inflows, and broadbased participation across sectors. Technically, the next upside targets range between 25,200 and 25,800, provided it sustains above the 24,800 support zone. However, a breakdown below this level could pull the index back toward 24,200. Market breadth remains healthy, with midcap and smallcap indices outperforming, indicating rising risk appetite. Overall, the near-term structure for Nifty remains bullish, with any dips likely to be viewed as buying opportunities.

PRITESH MEHTA

EXECUTIVE VICE PRESIDENT – RESEARCH, YES SECURITIES

Where is the Nifty headed this week?
This week, Nifty rallied by 4%, staging a bullish turtle break and, in the process, it also surpassed the 45-degree downward sloping trendline on the P&F chart. We expect the follow-through move to persist post formation of a bullish anchor column. Interestingly, riskon names/sectors like midcap IT, metals, and broader markets are back in favour. In such a scenario, focus will be beyond the index. Nifty is expected to gradually move higher post-recent rally, with 25,300 as the upside potential target for the next few weeks.

Trading Strategies for the Week:

Both Midcap 100 and Smallcap indices rallied 7% and 9% respectively, outperforming the benchmark index. The ratio of Midcap 100 vs Nifty is attempting to surpass the peak of Feb 2025; a break above the same would continue Midcaps’ outperformance. We expect a 10–12% rally in Bharat Forge, LTF, and LIC Housing. Post a sharp decline in April, Nifty Metal index bounced off the 2-year mean and is attempting to surpass the March 2025 peak. SAIL and Tata Steel likely to be major movers in next few weeks.

Agencies

RUCHIR JAIN
HEAD - TECHNICAL RESEARCH, MOTILAL OSWAL FINANCIAL SERVICES

Where is Nifty headed this week?
Nifty witnessed a sharp upmove last week, supported by easing geopolitical worries and strong FII buying. The index continues its ‘Higher Top, Higher Bottom’ structure, with the previous resistance zone of 24,500-24,600 now acting as short-term support. Nifty could advance towards 25,200–25,250, followed by 25,700, which aligns with the October 2024 gap zone. Positionally, the index may retest all-time highs soon, and any dips should be viewed as buying opportunities.

Trading Strategies for the Week:
PSU and capital market segments are showing signs of a breakout and could outperform in the near term. Short-term traders can consider buying HDFC AMC, MCX, Concor, and Hudco, where the risk-reward appears favourable. For positional traders, Eternal looks promising as it breaks out after four months of consolidation, indicating potential for a sustained uptrend.

ARPAN SHAH
SENIOR RESEARCH ANALYST, MONARCH NETWORTH CAPITAL

Where is the Nifty headed this week?
Nifty has given breakout from the 24,800– 25,000 resistance zone and closed with a bullish candlestick formation on the daily chart. It may witness continued buying interest if it sustains above the 24,800 level and heads towards 25,800. However, a breakdown below the 24,800 support level will take Nifty back to the 24,200 level. Bank Nifty is likely to underperform the benchmark index in the coming days.

Trading Strategies for the Week:
The Metal index has given a breakout from trendline resistance and closed with a bullish candlestick formation on weekly chart. Investors are advised to accumulate Nalco and SAIL at current levels. Adani group stocks have witnessed strong buying interest last week, and they may continue upside momentum; Adani Green and Adani Enterprises are top picks from the pack. The IT index has recovered from the lows; however, it has reached near the resistance zone, and traders may witness some profi t booking from current levels. BSE is now showing reversal signs on the daily chart; traders can sell on rally. Among midcaps, Titagarh, CDSL, Brigade, and Polyplex have closed with bullish breakouts, and these stocks can be bought at current levels as well as on dips.