D-Saint Week Next: Nifty to stay inconclusive; Time to avoid fresh aggressive purchases

In the past week the markets were a little enthusiastic yet range-bound manner and ended on a positive note. The Nifty is oscillated within a narrow band of 300.80 points during the week, which rises at a high of 25,153.65 and 24,870.10 between a high of 25,153.65 and 24,852.85. India Wicks continued to cool down, reflecting the expectations of low instability, to settle 5.08% sliced ​​at 11.73 on a weekly basis. The Nifty scored 238.80 points, which is a weekly advance 0.97%.

We have a wardrobe next because Wednesday is a trading holiday because of Ganesh Chaturthi. The Nifty’s comprehensive composition remains within a large symmetry triangle on a weekly chart within the maturity consolidation phase.

The index continues to test the upper trendline of this composition, which covers with an overhead resistance of 25,100-25,150 on a daily deadline. This zone is a supply area, especially the daily chart shows a short -term congestion.

While markets were not in a strong trend, they are pushing against critical resistance, and the critical breakout above 25,150 could potentially open up velocity. On the contrary, any failure to advance this series can strengthen the consolidation bias.

Given the background of Fed Chair Jerome Powell’s Dovish comment, the global sentiment can help a positive start, especially after indicating a potential rate reduction in September. That said, a gap-up opening could take place in the first half of the week. However, the Nifty will probably resist around 25,000-25,150. On loss, immediate support is expected to be 24,650, followed by 24,475.

Weekly RSI is 55.06 and remains neutral; It does not show any bearish or bullish diversion against the price. Weekly MACD remains below its signal line and continues to show a negative histogram, which reflects the constant lack of velocity. No obvious bullish candle method is out, and the current weekly candle is relatively low, which strengthens the undeniable nature of the index at this level.

Pattern analysis shows that the Nifty still trades within a wide symmetric triangle, which began to form in September 2024. The longer the Nifty is closed below the resistance line, becoming a more crucial move – either a breakout or a breakdown can push the directional move. The 20-week and 50-week moving average is relaxed below the current price, which indicates a bias of overall boom, though there is a lack of pace for now.

Given the current technical background and the fact that the next week is cut due to the holiday on Wednesday, market participants will do good to contact a week from a balanced point of view. The Nifty phase should be postponed until a crucial breakout above 25,150.

Until then, a selective, stock-specific approach should be favored with a strict stop-loss. The focus should be on protecting and responding to the benefits rather than forecasts. The method for next week should be around 25,100-25,150 with active optimism with active supervision of the resistance area.

In our appearance on the related rotation graph (RRG), we compared different fields against the CNX 500 (Nifty 500 index), which represents more than 95% of the free-float market capitalization of all listed stocks.

Related rotation graph shows that the Auto To Index is the only group within the leading quadrant, maintaining its relative speed. All other Nifty field indicators like infrastructure, metal, PSU bank, realty, media, ENERGY Raza and Midcap 100 are also within the leading quadrant but are slowing down at the relevant pace against the widespread Nifty 500 index.

Nifty Financial Services, PSE and Bank Index are within a weak quadrant. The Commodities Index has been turned into a quadrant and is now extended with the indicators of the usage and service area.

The FMCG index correction is turned into a quarter and can begin the phase of its related outperformance. The IT index correction remains within the quadrant, slowing its relative pace while maintaining key support on the charts.

Important Note: RRGTM charts show the relative strength and motion of a group of stocks. In the above chart, they show relevant operations against the Nifty 500 index (extensive markets) and should not be used directly as indications of purchase or selling.

(Author is Milan Vaishnav, CMT, MSTA)

(Disclaimer: The recommendations, suggestions, opinions and views given by experts are their own. This does not represent the views of the economic time)