Buy or sell: The Indian stock market experienced significant activity this week, influenced by the US Federal Reserve’s decision to cut interest rates by a quarter point, marking its third reduction this year. However, Fed Chair Jerome Powell’s indication of only two more quarter-point cuts in 2025 tempered market optimism. The anticipation of limited rate cuts and persistent inflation triggered a 3-5% market correction across indices for the week.
The Nifty 50 index showed technical resilience, supported by the formation of an inverted head and shoulders pattern, with a neckline at 24,200 targeting the 25,000 – 25,300 zone. The index touched 24,950 before witnessing profit booking as the week concluded.
Throughout the week, the Nifty 50 traded within a volatile range of 23,500 – 25,000, with sectoral profit booking dominating. Current Nifty Open Interest (OI) data suggests the index is in the oversold zone at 0.75, hinting at possible short-covering if the index sustains above 23,300–23,500 for the monthly expiry.
For the upcoming week, a range of 23,300 – 24,500 is expected, with any breakout potentially signalling a fresh trend toward 24,000 – 24,200 for monthly expiry and any breakout beyond 23,300 – 24,500 levels may signal a fresh trend.
Bank Nifty Performance
The Bank Nifty index mirrored the Nifty’s volatility, facing heavy profit booking and a steep 5% decline of nearly 3,000 points, closing at 50,700. Despite a positive start on Monday, consistent selling pushed the Bank Nifty index lower, testing resistance at 54,000 and bottoming at 50,800.
For the upcoming sessions, support is observed at 49,500, while resistance lies at 52,000. Sustained movements within this range will dictate the near-term direction.
Conclusion
Both the Nifty 50 and Bank Nifty indices have closed below their respective weekly support zones, maintaining a generally bearish bias. Investors are advised to closely monitor key support and resistance levels as they evaluate trading opportunities in the forthcoming sessions.
Stocks to buy on Monday
1. Amber Enterprises India | Buy at ₹6,100 – 6,130 | Target Price: ₹6,500 | Stop Loss: ₹5,750
2. RCF | Buy at ₹168 – 172 | Target Price: ₹185 | Stop Loss: ₹160
3. Godrej Industries | Buy at ₹1,100 – 1,120 | Target Price: ₹1,175 | Stop Loss: ₹1,070
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
