Last week, Nifty traded within a tight 512-point band, forming an NR4 pattern. Despite this consolidation, volatility remained elevated, hinting at a potential breakout. The index has been moving in a corridor of 26,009–25,373 since February 4, with flattened moving averages indicating a lack of clear trend. Momentum indicators such as the daily RSI also signal a sideways bias, suggesting structural consolidation before a potential rally.
Key support levels for Nifty remain in the 25,400–25,350 zone, while immediate resistance lies at 25,950–26,000. Traders will closely watch how Nifty reacts around these levels to gauge near-term market direction. Bank Nifty continues to outperform, trading near lifetime highs and signaling sector strength, supported by a rising Bank Nifty–Nifty ratio chart at a 33-month peak.
Stocks showing bullish momentum include Indian Bank, Tata Steel, ABB India, Hitachi Energy, KEI Industries, NTPC, and Apar Industries. Indian Bank recently broke out of a horizontal trendline on a weekly scale, forming a strong bullish candle, while Tata Steel maintains a higher high–higher low structure on daily charts. ABB India has sustained upward movement following a trendline breakout, with volume spikes confirming the bullish trend.
Momentum indicators for Hitachi Energy and KEI Industries indicate strengthening buying interest, with both stocks trading above their short- and long-term moving averages. NTPC and Apar Industries are also showing technical signals of improving momentum heading into the week, maintaining key support levels while RSI and ADX indicators point to bullish bias.
Analysts recommend focusing on Indian Bank and Tata Steel as top stock picks. Indian Bank is advised for accumulation between Rs 938–948, with a stop-loss at Rs 915 and a potential upside target of Rs 1,010. Tata Steel can be accumulated in the Rs 207–209 zone, with a stop-loss of Rs 200 and potential to test Rs 225.
Market participants should remain cautious and monitor Nifty’s reaction around critical resistance zones, while leveraging stock-specific opportunities.
