TANMAY SHAH
RESEARCH HEAD, SIHL
Where is Nifty headed this week? After nearly a year of consolidation, Nifty is showing signs of a potential breakout from a Cup and Handle pattern, indicating renewed bullish momentum. The monthly structure remains constructive, though the daily chart reflects some indecision and profit-booking near the 26,100 levels, with the RSI hovering in the overbought zone. This week, Nifty may retrace towards 25,450 levels. However, as long as the index sustains above 25,450, the medium-term outlook remains “buy on dips.”
Strategies for the week: For investors, any short-term correction should be viewed as a buying opportunity, particularly in quality names with a medium- to long-term perspective. Sectors such as banking, metals, auto, and energy remain well-positioned to benefit from the ongoing economic and market momentum. Among the large caps, State Bank of India, ONGC, Tata Motors, and Tata Steel look good. In the mid-cap space, PI Industries, Indus Tower, and LIC Housing Finance stand out, while South Indian Bank and EIH offer small-cap potential.
AgenciesDHARMESH SHAH VICE PRESIDENT AND HEAD OF TECHNICAL, ICICI SECURITIESWhere is Nifty headed? Nifty’s weekly price action formed a Doji-like candle with a higher high–low, indicating profit-booking at the psychological mark of 26,000. The formation of higher peaks and troughs signifies buying demand at an elevated support base, which makes us reiterate our positive bias and expect Nifty to challenge the all-time high of 26,300 in the coming month.
The breakout from three months of consolidation helped Bank Nifty clock a fresh all-time high, highlighting structural improvement. Optimism around earnings also boosted sentiment in the IT, and oil & gas. Together, these indices carry 55% weightage in Nifty, which should provide the impetus to challenge the all-time high.
Strategies for the week: With recent profit-booking, the index is undergoing a healthy retracement of the 1,500-point up-move observed over the past four weeks. Therefore, any decline should not be construed as negative; instead, dips should be capitalised on to accumulate quality stocks with strong earnings, as key support is placed at 25,400. Sectorally, we expect BFSI, auto, metal, and consumption to outperform, while beaten-down sectors like IT, capital goods & infra, and PSU offer bargain-buy opportunities. On the stock front, Axis Bank, SBI, Reliance Industries, Nestle, Larsen & Toubro, Titan, Bharat Electronics, and Tata Steel look good for 5% upside. In midcaps, Persistent Systems, Kansai Nerolac, Gujarat Pipavav Port, and Indo Count look good for 8% prospective gains.
SUDEEP SHAH VP AND HEAD OF TECHNICAL AND DERIVATIVES RESEARCH, SBI SECURITIES
Where is Nifty headed? Profit-booking near record highs has paused the recent momentum, forming a Shooting Star pattern on the weekly chart — hinting at possible exhaustion. The RSI has eased from 72.6 to 67.1, adding to the cautious tone. Markets now await cues from the upcoming India–US trade deal, which could set the next direction. Technically, 25,550–25,500 serves as a key support zone (13-day EMA and 38.2% retracement), while 25,950–26,000 is immediate resistance. A sustained breakout above 26,000 could propel Nifty toward 26,300, whereas a slip below 25,500 may trigger deeper profit-booking.
Strategies for the week: Momentum remains strong in select pockets. Nifty Metal, IT, CPSE, Realty, and Oil & Gas indices continue to display solid bullish setups backed by favourable chart patterns and sustained relative strength, hinting at further outperformance ahead. These sectors have held firm even during market consolidations, reflecting underlying buying interest. In contrast, Nifty Media remains weak. Among stocks, Cummins India, Blue Star, Hindalco, and Cholamandalam Investment exhibit promising technical structures and look well-positioned for continued strength.
