The Indian stock markets have been in a corrective consolidation phase, with the Nifty-50 index and S&P BSE Sensex closing at 24,148.20 and 79,486.32, respectively. The primary outperformers last week were IT and Bank sectors, while Realty and Utilities lagged. Bank Nifty settled at 51,561.20, experiencing similar consolidation.
Nifty 50 and Bank Nifty Technical Outlook
Nifty 50: The index is encountering resistance around 24,500. A failure to hold support at the 24,000 level could lead to a retest of the 200-period moving average near 23,500, according to Vaishali Parekh, VP of Technical Research at Prabhudas Lilladher.
Bank Nifty: Consolidating between 50,500 and 52,580, the index is currently held by the 150-day exponential moving average (DEMA) near 50,550, says Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates.
Broader Market Factors
With recent global events concluded, the focus returns to domestic influences, including foreign fund flows, quarterly earnings, and economic indicators like IIP, CPI, and WPI. Ajit Mishra from Religare Broking highlighted the market's tendency to react to global risks rather than participate fully in global rallies. Stock-specific movements are expected as the final Q2 earnings announcements approach.
Recommended Stock Picks
Sumeet Bagadia's Recommendations:
Innova Captab Ltd (₹951.55)
Target: ₹1,010
Stop Loss: ₹915
Analysis: The stock has broken its neckline, forming a higher high and higher low pattern on the daily chart, indicating potential for upward momentum.
Federal Bank Ltd (₹206.77)
Target: ₹216
Stop Loss: ₹199
Analysis: Federal Bank is trading at all-time highs, supported by strong bullish sentiment and volume, suggesting continued upward movement.
Ganesh Dongre's Recommendations:
Blue Star Ltd (₹1,790)
Target: ₹1,850
Stop Loss: ₹1,760
Analysis: Blue Star has shown a significant reversal with support at ₹1,760, and its price action indicates potential for continued upward momentum.
State Bank of India Ltd (₹842)
Target: ₹870
Stop Loss: ₹820
Analysis: SBI is showing a bullish reversal pattern with support at ₹820, presenting a buying opportunity for a short-term upside.
Adani Ports and Special Economic Zone Ltd (₹1,350)
Target: ₹1,410
Stop Loss: ₹1,325
Analysis: Adani Ports has seen a breakout at ₹1,350, supported by a rising RSI, indicating increased buying momentum with the potential for further gains.
Conclusion
The Nifty-50 and Bank Nifty remain in consolidation, with resistance and support levels critical for Monday’s trading setup. Focus on high-quality stocks that are showing favorable technical patterns, as highlighted by analysts, while carefully managing risks with suggested stop-loss levels. With upcoming earnings and domestic economic data releases, the market may see stock-specific action throughout the week.
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