The markets traded with a recovery bias through the week, witnessing a rebound after early weakness and eventually closing on a positive note. Nifty oscillated in an 845-point range before settling near the higher end of this band. The broader structure remains corrective within a larger range-bound setup.
The index continues to face a formidable resistance zone between 24,500 and 24,700. Unless this zone is convincingly taken out, the current upmove may remain a pullback within a broader consolidation. The coming week is likely to begin on a positive note, with immediate resistance levels at 24,500 and 24,700, while supports are placed at 24,100 and 23,850.
A cautious and stock-specific approach is advisable for the coming week. The Relative Rotation Graph shows Nifty Midcap 100, Energy, Pharma, Metal, PSE, and Infrastructure Indices are inside the leading quadrant. The Bank Nifty, PSU Bank, Auto, and Financial Services groups are inside the weakening quadrant.
The Nifty IT and Services Sector Indices continue to languish inside the lagging quadrant, while the Media and FMCG Indices are inside the improving quadrant.
