Market Ends Week on Negative Note Amid Global Pressures
The Indian equity market concluded the trading week on a weak footing, with the benchmark Nifty 50 index declining by 0.89% to close at 25,492. The downward movement was primarily driven by negative global cues and growing concerns about a potential U.S. government shutdown, which dampened investor sentiment across markets.
Sectoral Performance Shows Divergent Trends
Despite the overall weakness in the benchmark index, several sectors demonstrated remarkable resilience and registered healthy gains ranging between 2% and 5%. The telecom sector emerged as the clear outperformer, posting an impressive 5% gain during the week. Banking, chemical, and financial sectors also recorded notable advances, reflecting broad-based buying interest across key market segments.
Technical Analysis and Derivative Data
From a technical perspective, Nifty closed the week below the crucial support zone of 25,500–25,600. Throughout the trading sessions, the index maintained positions above 25,500–25,600, tested resistance near 25,700–25,800, and ultimately settled at 25,492. Fresh support is now established at 25,200–25,300, while resistance remains positioned in the 25,700–25,800 range.
Derivatives data reinforces this technical outlook, with the highest Call open interest concentrated at the 26,000 strike, followed by 25,700, indicating potential resistance levels. On the Put side, significant open interest accumulation at the 25,200 and 25,000 strikes suggests strong support foundations for the index at these levels.
Bank Nifty Maintains Bullish Momentum
The banking sector displayed relative strength as Bank Nifty continued its bullish trajectory, gaining 0.17% during the week. The index finds solid support around the 56,500–57,000 zone, while facing resistance at 58,500–59,000. Both PSU and private banking entities contributed positively to this upward trend, demonstrating sustained strength across the entire banking spectrum.
Market Outlook and Trading Strategy
Overall market sentiment remains sideways, with a sustainable uptrend likely to materialize only if Nifty manages to hold above 25,600 and Bank Nifty maintains strength above 57,000. Market experts advise traders to adopt a disciplined buy-on-dips strategy in selective stocks while closely monitoring global developments and geopolitical cues for clearer directional signals.
Weekly Stock Recommendations
Analysts have identified several trading opportunities for the coming week:
Eternal: Buy at ₹306-309; Stop Loss at ₹297; Target Price of ₹330.
Cholamandalam Investment and Fin Co: Buy at ₹1680-1690; Stop Loss at ₹1650; Target Price of ₹1745.
Bajaj Finance: Buy at ₹1060-1066; Stop Loss at ₹1020; Target Price of ₹1120.
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.
