Outlook For Nifty Remains Bullish, Adopt Buy-On-Dips Strategy: Analysts

Mumbai: The Indian fairness benchmarks paused their fresh rally closing week, with the Nifty finishing simply above the mental 25,000 mark. However, the momentum signs favour the bullish setup subsequent week, consistent with analysts. While the headline indices confirmed indicators of delicate drive, the wider markets outperformed considerably. The BSE Midcap index won 0.8 in line with cent, and the Smallcap index added 1 in line with cent, indicating persevered purchasing hobby past the large-cap area.

“This suggests that investors are becoming more confident in the market’s breadth, often a bullish sign for the overall trend,” consistent with Kailash Rajwadkar of Choice Broking.From a technical point of view, the Nifty has not too long ago damaged out of a Rounding Bottom development at the weekly chart, supported by way of sturdy volumes—a bullish sign.

“The pattern projects an upside potential toward 28,000 in the short term. Immediate resistance is seen at 26,000–27,000 levels, where partial profit booking may be considered. On the downside, 24,300 and 24,000 are strong support zones; any correction toward these levels should be viewed as a buying opportunity, keeping the broader trend intact,” Rajwadkar discussed in a observe.

Momentum signs additionally fortify the bullish setup. The Relative Strength Index (RSI) stands at 61.9 and is trending upwards, indicating rising energy. Furthermore, the Nifty is buying and selling neatly above its key exponential transferring averages — 20, 50, 100, and 200 — highlighting sustained sure momentum. This technical alignment continues to favour a buy-on-dips technique.

In the derivatives area, marketplace volatility cooled off fairly, with India VIX shedding 23.49 in line with cent to 16.55, reflecting a decline in concern and a extra solid buying and selling surroundings.

“However, heavy call writing at 25,500 and 26,000 levels signals resistance at higher zones, while strong put writing at 25,000 confirms it as a crucial support. Traders should keep a close eye on the 25,000 level—a sustained hold above it may trigger fresh buying interest, though a risk-managed approach is recommended in the near term,” mentioned Rajwadkar.

Bank Nifty closed the week on a gentle observe, consolidating slightly below the important thing 56,000 mark. Despite restricted motion in Friday’s consultation, the index held company above earlier breakout ranges, reflecting underlying energy within the banking area. The weekly chart displays a breakout from a up to date consolidation vary, and the cost motion continues to carry above that breakout zone, signalling possible for additional upside.

According to Nandish Shah, Senior Derivative and Technical Research Analyst, HDFC Securities, the Indian Rupee liked marginally by way of 5 paise in opposition to the USA greenback, ultimate at 85.50 on Friday. This acquire used to be supported by way of a weakening greenback index and easing crude oil costs.

Among the sphere, Nifty Realty, Media and FMCG have been best gainers whilst Nifty IT, Healthcare and Metal sector ended within the pink. “The short-term technical outlook for the Nifty remains bullish, as it continues to trade above its key short-term moving averages. The next resistance level for the Nifty is seen at 25,207, derived from the 76.4 per cent Fibonacci retracement of the previous major decline. On the downside, the 24,800 level could offer immediate support,” Shah famous.