Daijiworld Media Network - Mumbai
Mumbai, Jun 22: The benchmark NIFTY 50 index ended the week with gains of 1.65 per cent but failed to sustain levels above the crucial 24,100 mark, raising near-term uncertainty among investors.
After opening the week on a strong note with a significant gap-up, the index witnessed initial profit booking. However, buyers regained momentum over the next three trading sessions, pushing Nifty above the 24,100 level.
The final trading session, however, erased a major portion of the previous gains after the index opened sharply lower. Although buyers recovered some losses in the last hour, the closing remained subdued, with Nifty ending just above the psychological 24,000 mark.
The formation of a ‘Doji’ candlestick pattern on the weekly chart indicates indecision between bulls and bears, suggesting that a clear directional move is required before aggressive positions are taken.
The index continues to face strong resistance near the 24,050–24,150 zone, where a downward-sloping trendline connecting the April and May swing highs coincides with the 100-day exponential moving average (DEMA). The 45-degree falling trendline on Point & Figure charts also highlights this resistance area.
Nifty outlook
Analysts suggest maintaining a cautious approach unless Nifty gives a convincing close above 24,150.
The immediate support level is placed near 23,900, while stronger support is seen in the 23,710–23,620 range.
On the upside, the previous session high near 24,200 remains the immediate resistance, followed by a stronger hurdle between 24,450 and 24,500.
Meanwhile, broader markets, especially midcap and smallcap segments, continue to show relative strength and outperform frontline indices. A stock-specific approach focusing on stronger sectors is expected to provide better trading opportunities.
Stock recommendations
Anand Rathi Wealth has remained in a strong primary uptrend, forming higher highs and higher lows consistently. The stock recently broke out from a Pole & Flag continuation pattern, indicating a possible continuation of the broader uptrend.
The bullish trend is further supported by the 1 per cent × 3 Point & Figure chart, where the stock has delivered a follow-through Double Top Breakout, reflecting sustained buying interest.
Analysts have recommended BUY Anand Rathi around Rs 1,867–Rs 1,860, with a stop loss of Rs 1,724 and a target of Rs 2,100–Rs 2,120.
Gabriel India, after a six-month consolidation phase following a retest of a bullish gap zone, is showing signs of a positive technical turnaround.
The stock has recently broken above its 6–7 month highs, indicating renewed buying interest. The daily 0.25 per cent × 3 Point & Figure chart has also formed a Double Top Buy Breakout, suggesting improving momentum.
Analysts have recommended BUY Gabriel India around Rs 1,197–Rs 1,195, with a stop loss of Rs 1,122 and a target of Rs 1,294–Rs 1,300.