Buy or sell: The Nifty index extended its bullish momentum through the week, supported by strength in the broader markets and favourable global cues. This sustained uptrend has kept market sentiment positive heading into the upcoming week.

A key driver behind this bullishness is the recent agreement between the U.S. and China to reduce tariffs, which has eased recession concerns and significantly improved investor confidence.

Additionally, global equity markets saw a strong rally, propelled by signs of cooling inflation and reduced geopolitical tension. These macroeconomic developments, combined with solid domestic participation, have reinforced the market’s upward bias, positioning the Nifty for continued strength in the near term.

Weekly Market Overview

The Indian equity markets witnessed a strong uptrend during the week, with the Nifty gaining nearly 4%. The index displayed robust stock-specific positive action, supported by persistent buying across sectors.

Following a gap-up opening on Monday, the Nifty maintained its position above the 24,600–24,700 range throughout the week, eventually closing near the 25,100 marks. 

This upward movement confirms that the previous resistance—corresponding to the 61.8% Fibonacci retracement of the recent decline—has now turned into a key support level.

Looking ahead, the next resistance is anticipated around the 25,500–25,600 zone, aligning with the 78.6% retracement level. A decisive weekly close above 25,200 could trigger fresh buying momentum, potentially propelling the index toward 25,600. However, a weekly close below 24,500 might signal a short-term breather, especially in light of prevailing global uncertainties.

Bank Nifty Outlook

The Bank Nifty underperformed slightly in comparison to the Nifty, posting a gain of 3.3% for the week. Immediate support for the index is identified in the 53,000–53,500 zone.

Sustaining above the 53,000 level on a weekly closing basis is likely to encourage the buildup of stock-specific long positions, with a potential upside toward the 56,000 mark. For the coming week, Bank Nifty is expected to trade within a broader range of 53,000 to 57,000.

Conclusion

Both Nifty and Bank Nifty have closed above their respective monthly support levels—23,800 for Nifty and 53,000 for Bank Nifty—signaling continued bullish sentiment.

The long-term supports at 21,700 for Nifty and around 50,500 for Bank Nifty remain critical benchmarks for initiating fresh long positions. Resistance levels to watch are 25,600 for Nifty and 57,000 for Bank Nifty. In the current environment, traders are advised to remain cautious, keeping a close eye on these technical levels while staying alert to geopolitical developments that could influence market direction.

Weekly stocks to buy or sell

Buy Bajaj Finance at ₹9150-9180; Stop Loss at ₹8900; Target Price of ₹9400.

Buy Multi Commodity Exchange Of India at ₹6445-6455; Stop Loss at ₹6340; Target Price of ₹6770.

Buy National Aluminium Co at ₹178-181; Stop Loss at ₹168; Target Price of ₹195.

Disclaimer: The views and recommendations above are those of individual analysts, experts and broking companies, not of Mint. We advise investors to check with certified experts before making any investment decision.