The index began the week on a weak note, opening gap-down and extending losses to an intraday low of 23,797, weighed down by rising Middle East tensions, firm crude oil prices, and a weakening rupee against the dollar.
However, strong buying interest at lower levels triggered a sharp V-shaped recovery, helping the benchmark recoup a significant portion of its early losses.
The Nifty eventually ended the week with marginal gains of around 0.42%, closing just below the 24,000 mark.
On the sectoral front, Nifty IT emerged as the top gainer, followed by Nifty Chemicals. In contrast, Nifty Metal and Nifty Realty were the key laggards.
Among stocks, Bajaj Auto and Sun Pharma led the gains, while TMPV and Eternal ended lower.
Broader markets mirrored the benchmark’s trajectory. After an initial gap-down and decline, the Midcap index staged a strong recovery from its lows. The Smallcap index, meanwhile, continued to show relative outperformance. Despite ending in the red, it held above the 18,000 mark, supported by buying at lower levels.
What do the Nifty 50 charts indicate?
During the week, the index briefly slipped below its 20-day EMA, but sustained buying ensured it closed back above this key short-term average.
Over the past six sessions, the Nifty has consolidated within a narrow 538-point band, with 24,300 acting as a strong resistance and 23,800 providing firm support. A decisive breakout on either side is likely to determine the next directional move.
Nagaraj Shetti of HDFC Securities said the Nifty is currently trading within a 23,800-24,300 range and, after bouncing from the lower band, has a higher probability of moving towards 24,300 in the coming week.
Nilesh Jain of Centrum Finverse said that the index has found strong support near its 21-DMA at 23,800, and as long as it holds above this level, the pullback could extend.
Immediate resistance is placed at the 50-DMA near 24,140, and a breakout above this level may open the path towards 24,500. On the downside, a breach of 23,800 could drag the index towards 23,500.
Rajesh Bhosale of Angel One maintained that the overall bias remains positive, with dips likely to be bought into.
Strong support is seen near 23,500, followed by 23,400, while resistance around 24,350, aligned with the 50-DEMA, remains a key hurdle. A breakout above this level could push the index towards 24,600 and higher levels.
