Nifty Set to Stay Rangebound: Sudeep Shah Reveals 8 Stock Picks for the Upcoming Week in F&O Talk
The Indian stock market demonstrated resilience as it closed in positive territory, with the Sensex incrementally rising by 109 points to finish at 77,100.47 and the Nifty 50 gaining 34 points to close at 24,056. Despite earlier robust gains exceeding 1%, the indices experienced a pullback, particularly affected by the Sensex’s monthly expiry dynamics. Analysts suggest that this week’s performance reflects persistent indecisiveness among investors, as technical indicators show a lack of compelling momentum despite the markets ending on a high note for the week.
From a technical perspective, both the Nifty and Bank Nifty indices showcased a range-bound behavior, with the Nifty operating within a significant consolidation zone. The current price action highlights that the immediate resistance for the Nifty lies between 24,250 to 24,300, while critical support is identified between 23,800 to 23,750. A decisive breach above the resistance could spur a rally towards 24,500, while failure to hold the support level may initiate further corrections. Meanwhile, the Bank Nifty has shown strength by outperforming the broader market and currently remains above its short-term and long-term moving averages, despite recent profit-taking at higher levels.
The derivatives market reflects a cautiously optimistic sentiment among institutional players. Recent trends in the Nifty’s movement, accompanied by a decrease in open interest, imply a reliance on short covering rather than new long positions. Furthermore, a significant improvement in the FII long-short ratio suggests that foreign institutional investors are easing their bearish stances, albeit at a measured pace. The Put-Call Ratio remaining above 1 denotes a sustained positive sentiment among traders, who are actively engaging in put writing, signaling confidence that support levels will hold.
Sector-wise, the outlook remains favorable for Private Banking, Financial Services, Auto, Pharmaceuticals, and Tourism, indicating strong momentum and positive price structures. Conversely, while some recovery has been observed in the IT sector, its technical setup still appears weak overall, requiring significant resistance reclaiming to restore bullish momentum. Investors should remain vigilant on key support and resistance levels for strategic positioning, particularly as the market approaches critical inflection points in the coming sessions.
Source: The Economic Times
(Expert Note: This report was prepared by the Wealthova team.)