Markets remained under pressure with the Nifty settling at 23,767, down 2.33% for the week, as reported by The Times of India. The index traded with a negative bias throughout the session after a subdued start, eventually closing near the day's lows. Sectoral participation remained largely negative, with realty and IT emerging as the biggest laggards, followed by weakness in financials and pharma sectors. However, select FMCG and auto stocks stood out as key outperformers after encouraging quarterly earnings from some companies. Friday's session provided some signs of support emerging at lower levels, with Nifty finding buying interest near the 61.8% Fibonacci retracement of its recent rally from 23,070 to 24,531, leading to a modest recovery from the day's lows.
The Nifty continues to trade below its key short and long-term moving averages, with the 20-day and 50-day EMAs trending downward, highlighting weak momentum, according to The Times of India. The Daily RSI is hovering around 43 and remains below its 9-day average, indicating subdued strength, while the MACD histogram continues to stay below the zero line, reinforcing the prevailing bearish bias. Despite the weakness, the index formed a bearish candle with a small lower shadow on the weekly chart, indicating selective buying interest. The 23,650-23,600 zone will be a crucial support area for Nifty, with a decisive breach below 23,600 potentially extending the correction towards 23,450 and subsequently 23,300. On the upside, the 23,950-24,000 zone, which coincides with the 50-day EMA, is expected to act as a significant resistance hurdle.
Marico Limited is recommended as a buy with a target of ₹925 and stop-loss at ₹830, trading at its last price of ₹862.65. According to Religare Broking's Ajit Mishra, the stock exhibits a steady uptrend with higher highs and higher lows structure while trading within a rising channel. Hindustan Aeronautics Limited receives additional support from SBI Securities' bullish outlook, with the brokerage recommending accumulation in the 4560-4605 zone with a stoploss of 4425, targeting ₹4930 in the short term. The stock has delivered a strong ascending triangle breakout on the daily timeframe, with the DI+ holding above DI- on the ADX indicator highlighting that bulls remain firmly in control. JSW Energy Limited is recommended as a buy with a target of ₹603 and stop-loss at ₹540, trading at its last price of ₹561.7, with Religare Broking noting the stock exhibits robust bullish structure supported by an ascending trendline.
United Spirits Ltd has been identified by SBI Securities' Sudeep Shah as a top stock to buy this week, with recommendations for accumulation in the 1460-1475 zone with a stoploss of 1420, targeting ₹1580 in the short term. The stock gave a downward sloping trendline breakout on the weekly chart three weeks ago and now trades above key short and long term moving averages with upward-sloping moving averages. The RSI has turned higher and is comfortably above 60 on both daily and weekly timeframes, while the stock has closed above the upper Bollinger Band, a phenomenon often seen at the start of strong trends. Bank Nifty remains highly volatile after touching a high of 58,228, ending the week around 56,700, down more than 3%. The index briefly slipped below its crucial 200-day EMA on Friday but managed to reclaim and close above it, with the 56,000-55,800 zone remaining a critical support area.
