The Nifty ended the week with a mild weekly loss of 76.35 points (-0.31%) to close at 24,175.65, according to reports from The Economic Times. The index spent the week consolidating within a 302-point range between 24,076.85 and 24,378.60, reflecting the continued absence of a clear directional trigger. India VIX declined 4.64% to 10.68, keeping volatility expectations subdued during the trading period. The index slipped below its 10-week moving average but managed to hold above the 20-week moving average near 24,036, as reported by Dalal Street Investment Journal.
The index continues to consolidate within its established 23,900–24,000 support zone on the downside and faces resistance from a significant cluster of moving averages in the 24,400–24,750 region, as reported by The Economic Times. The 100-week MA at 24,428, 200-DMA at 24,652, and 50-week MA at 24,729 create a formidable resistance zone that makes this area crucial for any sustainable breakout. The index also respected the rising trendline drawn from the April 2 low, providing additional support to the ongoing consolidation. The 24,000 mark continues to be an important psychological support level, with the 20-week moving average near 24,036 further strengthening this support zone. A sustained breach below this area could increase selling pressure and alter the current market setup.
The weekly RSI stands at 49.11, remaining neutral and showing no meaningful bullish or bearish divergence against price, according to The Economic Times. The weekly MACD continues to remain below the zero line but is positioned above its signal line, while the positive histogram indicates that downside momentum has moderated. On the daily chart, the MACD line has moved below the zero line, highlighting a loss of short-term momentum, as reported by Dalal Street Investment Journal. However, the negative bars have reduced in size, indicating that downside momentum has eased. The narrowing Bollinger Bands on the weekly chart indicate declining volatility, which often precedes a sharper directional move once the range is broken. Immediate resistance is expected at 24,330 and 24,500, while supports are likely at 24,000 and 23,900. Analysts suggest that Nifty must clear the 24,200–24,400 zone to regain strength, with some recommending bullish option spreads to capture rebounds while cautioning against further downside if 23,900 breaks.
According to The Economic Times analysis using Relative Rotation Graphs®, Nifty Media, Auto and Realty indices are in the leading quadrant, which may relatively outperform the broader benchmark. The Nifty Pharma Index is in the weakening quadrant but showing improvement in relative momentum, while the Midcap 100 Index remains in the weakening quadrant and may see continued slowdown. Nifty Financial Services, Bank, IT, Services Sector and PSU Bank indices are in the improving quadrant, with the IT Index showing strong rotation likely to continue. The Nifty's relative strength compared with the Nifty 500 remains weak, suggesting that large-cap stocks have lagged the broader market during the recent period.
Given the current setup, aggressive directional exposure may not be rewarding while Nifty remains trapped within its defined boundaries, as noted by The Economic Times. The preferred approach for the coming week is to remain selective, keep position sizes measured and wait for a confirmed breakout or breakdown before adopting a stronger directional view. Fresh buying should remain selective and stock-specific, particularly as the index approaches the overhead moving-average cluster. For the bulls to regain control, the index needs to move above and sustain over the 20-DMA, currently placed near 24,376, as reported by Dalal Street Investment Journal. Holding above the August 19 low of 24,026 will also remain crucial to maintain the possibility of a recovery. Until a clear breakout emerges, investors should maintain a neutral to mildly positive approach and focus on stocks and sectors showing relative strength rather than taking broad market bets. Analysts recommend specific stock picks including HEG (₹737-₹780), Laurus Labs (₹1,938-₹2,050), Glenmark Pharmaceuticals (₹2,515-₹2,701), Shipping Corporation of India (₹299-₹320), Newgen Software (₹567.1-₹590), and Elgi Equipments (₹628.85-₹685) with defined targets and stop losses.
