Nifty ended with a weekly gain for the second consecutive time. How sustainable is the uptrend that we are seeing now?
Having formed a base near 23800, the bounce thereafter looked set to support rapid ascent to 25000-25600. However, the breakout move past 24300 failed to sustain casting doubts on the sustainability to the upmove attempts. VIX not being much far from 17 is also suggestive that traders continue to harbour volatility expectations, with momentum indicators. This prompts us to look at the 24120 region, coinciding with the 20 day SMA with caution, inability to float above which could expose 23400.
Nifty Bank also made a steady upmove but that comes after two weeks of losses. Where do you see the index moving in the week ahead?
Nifty Bank’s recent steady upmove has come after nearly two weeks of losses, but the broader setup remains cautious. On the daily chart, MACD has given a bearish signal break, which continues to persist, indicating that the prevailing trend is still corrective despite the bounce. Price action also reflects lack of strength, with only one meaningful up day during the week, while the remaining sessions saw selling pressure. The 54,300-54,000 zone remains a strong support pocket and holds the key to preventing a deeper decline. On the upside, 56,300 is a well-defined supply zone, where any rebound is likely to face resistance.
The derivative picture adds to the bearish bias. Nearly 60% of near OTM puts have seen long additions and ITM calls have seen short additions, reflecting defensive positioning. Additionally, around 40% of stock futures saw short additions on Friday, and nearly 50% on a week-on-week basis, suggesting traders are positioned for further weakness.
From a stock-specific perspective, ICICI Bank, SBI and Axis Bank look vulnerable to further downside, and could continue to drag the index lower. Overall, Nifty Bank may remain rangebound to weak between 54,000 and 56,300, with risks tilted to the downside unless momentum improves decisively.
Firstsource and Godrej Industries were among the top gainers in the week. What are the charts indicating at now?
For First source, a run upto the 200 day SMA, now at 310, appears to be the anticipated move, having closed above recent peak as well as upper bollinger band. Alternatively, given the large gains of last Friday, inability to contain dips above 258 could signal a premature end to the upmove. For Godrej Industries, 1244-278 appears to be a pause point for the present leg of upside. Those preferring to risk a reversal, and let profits run until 1324 perhaps, should have stop loss atleast near 1154.
Vedanta shares ended the week 9% higher amid demerger. How to trade now?
With value unlocking already announced, and listing of the demerged entities pending, activity has persisted with Vedanta. Upside trajectory is still uncertain, and with two days of fall prompting oscillators to signal negative divergence, we are not in favour of following prices higher.
Give us your top ideas of the week.
SENCO (LTP: 365)
View: Buy
Target: 400
SL: 339
SENCO is showing a strong bullish reversal across higher timeframes. On the weekly chart, the stock has decisively broken above the Supertrend, supported by a clear bullish Marubozu candle, reflecting strong demand and conviction buying. This breakout signals a shift from consolidation to trend resumption on the upside.
Momentum indicators further strengthen the bullish case. The monthly MACD has given a bullish signal break, indicating the beginning of a medium to long-term uptrend. This alignment of weekly price action and monthly momentum suggests sustainability in the move. With price holding above key breakout levels, the stock has the potential to move towards 400 in the coming weeks. 339 should act as a protective stop-loss, below which the bullish structure would weaken.
MOSCHIP (LTP: 227)
View: Buy
Target: 285
SL: 199
Moschip Technologies is displaying a strong bullish reversal backed by multi‑timeframe confirmation. The stock has broken above the weekly Supertrend and formed a clear bullish Marubozu candle, signaling conviction buying. On the higher timeframe, a monthly declining trendline breakout marks a shift from a prolonged corrective phase to a potential structural uptrend. Adding strength to the setup, the stock is now trading above its 20 and 50 period moving averages on both daily and weekly charts, indicating improving trend strength and momentum alignment.
As long as prices sustain above key support, the structure favors further upside toward 285 in the near to medium term. 199 remains a critical stop‑loss, below which the bullish view would be negated.
