Nifty's breakout above 25,150 to pave way for 25,500: Analysts
DHARMESH SHAH
HEAD OF TECHNICAL, ICICI SECURITIES
Where is Nifty Headed This Week?
Nifty underperformed global peers last week. Its weekly price action formed a small bearish candle, suggesting an extended breather. We expect the index to continue consolidating in the 24,500–25,100 range, with a positive bias. The index has sustained above its 20-day moving average, and the formation of higher highs and higher lows, along with improving market breadth, suggests that a breakout above 25,100 is likely, with a target of 25,500 in June.
Trading Strategies for the Week:
Volatility is expected to subside as the earnings season concludes, and attention shifts to the upcoming RBI policy. Sectors such as BFSI, auto, capital goods, realty, oil & gas, and metals are expected to be in focus. Dips should be viewed as buying opportunities, with strong support at 24,200. Stock picks include Reliance, SBI, Axis Bank, DLF, L&T, Tata Steel, HPCL, and Adani Ports (5–6% upside potential). Mid-cap picks include Indian Bank, L&T Finance, Elgi Equipment, HEG, and JK Cement (8–10% potential).
SUDEEP SHAH
HEAD - TECHNICAL AND DERIVATIVE RESEARCH, SBI SECURITIES
Where is Nifty Headed This Week?
Nifty posted its lowest monthly range in 10 months, a sign that often precedes sharp directional moves. Despite the tight trading band, the index closed the month on a positive note, marking its third consecutive monthly gain. Strong rollovers suggest continued investor confidence. Seasonality trends are also favourable—June has ended in the green in 11 out of the last 18 years, with an average gain of 4.19%. Technically, 25,050–25,100 is the immediate resistance zone; a sustained breakout could trigger a rally to 25,500–25,700. On the downside, 24,500–24,550 is a key support, followed by the 50-day EMA near 24,100.
Trading Strategies for the Week
This consolidation phase presents a good opportunity for long-term investors to accumulate quality largeand mid-cap stocks. Traders should focus on PSU banks, financials, capital markets, PSEs, and realty, which may outperform in the near term. Large-cap ideas include HDFC Bank, Pidilite, PNB, and Bank of Baroda. In the mid-cap segment, Muthoot Finance, Manappuram, Cummins, NBCC, and HUDCO are expected to perform well.
TANMAY SHAH
HEAD OF RESEARCH, SIHL
Where is Nifty Headed This Week?
Nifty is showing signs of indecision amid global slowdown fears triggered by a 0.2% dip in US GDP— the first since 2022—raising concerns of possible stagflation. The index faces crucial resistance at 25,080. A breakout above this level could pave the way for a move towards 25,550. On the downside, 24,600 is expected to act as strong support, cushioning against further declines..
Trading Strategies for the Week
With the market now focused on the upcoming MPC meeting, which broadly anticipating a rate cut, liquidity could improve, adding further stability. While valuations appear stretched, a 'buy-on-dips' approach could be prudent. Other sectors showing strength include metals, chemicals, housing finance, textiles, and infrastructure. Among large-caps, SBIN, Adani Ports, IOC, and UltraTech Cement look solid. In the mid-cap space, PB Fintech, Deepak Nitrite, and KEI Industries stand out, while Laurus Labs, NCC, and PNB Housing Finance offer small-cap potential.
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