F&O talk: Nifty consolidation in a narrow series; Sudip Shah of SBI Securities says that the NR7 pattern indicates the directional shift

Indian markets fell on Friday, extending their losses for the third consecutive week. Negative spirit was mainly in the financial and auto toe areas, with a weakness, potential in the US. Combined by ongoing concerns about tariffs. These factors have reduced the confidence of investors, resulting in pulls in major indicators.

The benchmark BSE Sensex closed 424.90 points or 0.56%at 75,311.06, while the wider Nifty 50 index decreased by 117.25 points or 0.51%, which ends the session at 22,795.90.

SBI Securities Deputy Vice President and Head of Technical and Derivatives Research Sudeep Shah interacted with the Nifty and ET markets on the Nifty Nifty next week’s index strategy. The quotes edited from its chat are as follows:

Nifty has seen consolidation in the past week. Despite the 22,800 on the damage, it is not able to cross the high level resistance. What is your opinion on the Nifty?

In line with our expectations, after the composition of the candlestick pattern after the record session calculation, the benchmark index Nifty breathed last week. The index trades in a narrow range of about 330 points, the lowest weekly range since the last week of December. Throughout the week, small-field candles were made in the index, which indicates blurry and lacks a strong conviction from both the oxen and the bear.

Despite the consolidation in the frontline indicators, there are extensive market indicators, that is, the Nifty Midcap and the Nifty small cap 100, relatively the frontal indicators. However, on Friday, the two failed to sustain at a high level and then witnessed the improvement.

Returning to the Nifty, on a weekly basis, the index has created an NR7 pattern. The composition of this pattern indicates the low instability and phase of the compression of the range. HIST, such patterns increase instability and critical directional movements, indicating that breakout or breakdown may be imminent in the upcoming sessions.

What about Bank Nifty? It is also very unstable and shows a kind of pattern -like pattern on the daily chart. It has also begun to fall from its resistance formed by that pattern. What does this indicate?

Banking benchmark index bank Nifty has been trading in the range of 49,628-48,525 zones for the last six trading sessions. Due to the consolidation, the moving average began to lose their curved nature. According to the RSI Range Shift Rules, the Daily RSI has been in the side zone for the last few trading sessions. There is no pattern like a falling wedge on the daily chart.

Going forward, the index is likely to continue its consolidation in the level zone of 49628-48525 for the next couple trading sessions. Both sides will lead to a trending move in a critical breakout index.

Any key layers to see in these indicators?

For the Nifty, a zone of 22,600-22,550 will act as an immediate support for the index. If the index slips below the level of 22,550, then we can further improve the level of 22,250. However, on the sidewalk, the zone of 23,050-23,100 will act as a crucial barrier to the index. Any durable move above the level of 23,100 will lead to the expansion of the pullback rally to the level of 23400, followed by 23,700 levels in the short term.

For the bank Nifty, a zone of 49,600-49,700 will serve as a crucial barrier to the index. Any durable move above the level of 49700 will lead to a sharp side rally up to 50600 levels in the short term. However, at the loss, the zone of 48600-48500 will act as an immediate support for the index. Any durable move below the level of 48500 will resume its southern journey. In that case, the next critical support has been placed in the area of ​​47,900-47,800.

What of the specific fields? What is your opinion on them?

Currently, most of the fields are witness to consolidation with bearish bias. The Nifty Automobile, the Nifty Healthcare, the Nifty Pharma, the Nifty FMCG and the Nifty have seen fresh breakdown.

On the other hand, the Nifty is showing a metal outperformance. Currently, it trades above its short-term moving average, that is, 20 and 50-day EMA levels. This average high -edge edge is started, which is a mark of boom. Next, the daily RSI will cross the 60 mark. Therefore, we believe that metal stocks are likely to be outperformed in the short term.

And what is your opinion on the smallcap and midcap space?

The Nifty Midcap and the Nifty Small Cape 100 have advanced relatively frontline indices in the past week, displaying a strong rebound rally. However, in Friday’s session they saw struggling to keep high levels, leading to improvement.

Given the current chart structure, both indicators are likely to enter the phase of consolidation in the next three to four trading sessions. It would be wise to wait before starting fresh positions, and these indicators will consider entries only after sustaining Friday’s high.

Any stocks to be careful?

Technically, Camelin Fine Science Limited and Garwar High-Tech Films Limited are likely to move in the short term.

Let’s talk about selling a large amount of fees. It is more than 1 lakh crore in 2025 so far. Will you see them coming back soon?

Yes, the proportion of FII sales has been significant, which marks the fifth consecutive month of flow from the Indian equity market. Their compensation is largely based on global factors such as Fed’s monetary policy, India’s economic growth route and overall market value. A stable rupee, strong corporate earnings and favorable domestic signals can help revitalize FII’s interest next month.

With all the clumps around Donald Trump’s statements about tariffs, you will see how our markets are affected? Like, we have been an under -conscious market till now and then the US. Statements like this from the President. What effect will this be on the fear quotent?

Trump’s tariff statements can increase global uncertainty, potentially stimulating short -term instability in our markets. Given the current lack of confidence, such external factors can expand investors’ concerns, especially in significant exposure to exports. However, India’s strong domestic fundamentals can help with the impact over time.

What is your vote on HDFC Bank from a short -term point of view?

The stock has been oscillating in the level range of 1738-1677 for the last few trading sessions. Due to the consolidation, the moving average began to lose their curved nature. The daily RSI RSI range is in the side zone as per the shift rules.

Therefore, we think the stock is likely to be integrated into the level area of ​​1,738-1,677 for the next two-trading sessions. Both sides will lead to a sharp trending move in a critical breakout stock.

What are your views on RIL?

The stock of Reliance Industries is in the downtrend as it marks the lower tops and the lower bottom order. Also, it trades below its short and long -term moving average. This is in the average falling mode, which is a bearish sign.

Recently, the stock has been marked by Rs 1,193 and has since started witnessing a bridgeback rally. However, in the pullback rally, the volume activity is mostly lower than average, indicating that it is only a regular pullback after the following rally and that the stock is likely to resume its southern journey in the next two -transfer sessions.

Any stocks you think have been technically well placed?

Hindalco: The last few trading sessions have been pushing the stock frontline indicators. It marks the order of high tops and high bottoms with relatively high volume. Currently, he is trading above its short and long -term moving average. The daily RSI is in the boom territory, and is in growing state. Therefore, we recommend collecting stock in a level area of ​​655-650. With a stop loss of Rs 630. On the sidewalk, it will cost Rs. It is likely to test the level of 685.

Indigo: Recently, the stock has received support near its 200-day EMA level and then a sharp side rally has been seen. Currently, stock is trading above its short and long -term moving average. This average high edge has been launched, which is a boom mark. The most notable, daily RSI is in the boom area. Therefore, we recommend collecting stock in a level area of ​​4520-4490. With a stop OSS of Rs 4360. On the sidewalk, it is likely to test the level of Rs 4730, followed by 4850 rupees in the short term.

(Connection: The recommendations, suggestions, opinions and opinions provided by experts have their own. This does not represent opinions of economic time)