Dalal Street Week Ahead: Selective Buying Favoured as Nifty Remains Range-Bound

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The coming week is likely to see a quiet to modestly positive start, provided Nifty continues to defend the 24,100 area. However, the index will need to move past the overhead resistance cluster before any meaningful directional strength can emerge. The immediate resistance levels are expected at 24,450 and 24,700, while supports are likely to come in at 24,100 and 23,900.

The weekly RSI stands at 50.11, remaining almost exactly around its neutral 50 mark with no bullish or bearish divergence visible on the weekly chart. The weekly MACD continues to improve: the MACD line is above its signal line, while the histogram remains positive, indicating that underlying momentum has strengthened despite the absence of a price breakout.

Pattern analysis shows Nifty continuing to trade within a large consolidation structure, while the rising trendline from the April low provides an important dynamic support. The more immediate technical challenge comes from the dense moving-average resistance around 24,450–24,750. This concentration of technical levels on either side suggests that a convincing move outside these boundaries will be required before a sustainable trend develops.

NIFTY 500 Index), representing over 95% of the free-float market cap of all the listed stocks.

The Pharma Index has rolled inside the weakening quadrant. The Midcap and the Energy Indices are also inside the weakening quadrant. Baring some individual performance, the collective performance from these groups may taper down.

The Metal Index has rolled inside the lagging quadrant. The PSE, Infrastructure, and FMCG Indices are also inside this quadrant. However, these groups are showing some improvement in their relative momentum against the benchmark.

The PSU Bank Index has rolled inside the improving quadrant, indicating a likely start of a phase of its relative outperformance. Besides this, the IT, Financial Services, BankNifty, and Services Sector Index are also inside the improving quadrant.

Important Note:RRG™chartsshow the relative strength and momentum of a group of stocks. In the above Chart, they show relative performance against the NIFTY500 Index (Broader Markets) and should not be used directly as buy or sell signals

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