PrimeTech Weekly: Market Strategy and Technical Outlook Across Benchmarks and Sectors

Choppy Movement Is Likely To Reverse Soon. Bullish Runaway Gap Could Mean More Upside In The Near Term

An Excellent Bounce Back After A Sharp Correction. Bulls Are Preparing For More Action In Coming Weeks

Long-term Uptrend Remains Intact. Present Consolidation Could Be An Opportunity To Add On Dips

Bank Nifty : The Banking Index Outperforming The Benchmark. Higher Possibility Of Range Breakout In The Near Term

Nifty Midcap 100: Seems To Have Formed A Crucial Bottom Reversal Pattern. Look For Bottom Fishing In Selective Midcap Stocks

Nifty Smallcap 100 : Formation Of Crucial Bottom Reversal Suggests A Possible Outperformance Of Selective Smallcap Stocks Ahead

Study Of Previous Union Budgets Hinting At A Possibility Of Bulls Comeback After The Event.

RBI’s Policy Meet Outcomes Since 2024 : Sharp Movements Have Emerged From Bottoms & Tops. Time For Another Bottom Fishing..?

Nifty Energy : Massive Consolidation Breakout Of Trend Line Hurdle Is On Cards. Selective Energy Stocks Could Be In Limelight

Actionable : Trading Strategy

The underlying trend of markets remain choppy with positive bias. Look to create longs on breakouts of immediate hurdles and adopt trading strategies as mentioned in the below table by placing appropriate stoploss.

Conclusion : Market Outlook & Strategy

• The market has witnessed massive volatility on the back of key events like Union Budget, India-US trade deal announcement and RBI’s Policy outcome in the last one week. After a steep decline & decisive breakouts this week, Nifty has bounced back smartly from the lows on Friday and closed higher.
• The underlying trend of Nifty remains positive. A decisive move above 25800 could bring bulls into action towards the upside target of 26000 and next 26350 levels in the near term. However, any weakness from here could find supports around 25500 and next 25100. Positional support is placed at 24570.
• The underlying trend of Bank Nifty remains positive with range bound movement. Breakout of immediate resistance at 60800 is likely to open upside target of 61760 in the near term. Immediate support is placed at 59600 and positional support is at 57800.
• The worst period of broad market indices seems to be over. The recent formation of important bottom reversals is likely to bring cheers to midcap and small cap segments in the coming weeks. One may look for bottom fishing in selective midcap/smallcap stocks ahead.
• Sectorally; Banking, Energy, Metal, Infra, FMCG, Realty, Consumer Durable and PSE are expected to outperform in the near term. While IT, Pharma and Defence sectors are expected to consolidate further before a bounce back.