Nifty 50 Ends 8-Week Losing Streak with 0.44% Gain
Nifty 50 shows signs of recovery, forming a Bullish Harami pattern as it snaps its longest losing streak since 2001.
Nifty 50 gains 0.44%, breaking an 8-week losing streak.
Key support at 22,200–22,250; resistance at 22,750–22,800.
Sudeep Shah of SBI highlights potential bullish momentum in stocks.
The Nifty 50 index has successfully ended its eight-week losing streak, achieving a modest gain of 0.44% this past week. This marks the longest weekly losing streak for the index since 2001. The index's recent performance has raised questions about whether bearish sentiment is waning, especially as it formed a Bullish Harami pattern on the daily chart and a Doji candlestick on the weekly chart, both near crucial support levels.
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that while these chart formations suggest early signs of stabilization, they require confirmation through sustained bullish momentum in the upcoming trading sessions. The 22,200–22,250 range is identified as a critical support zone, while the index must overcome the 22,750–22,800 resistance band to strengthen its recovery.
Despite the recent uptick, the Nifty 50 continues to trade below its key moving averages, indicating that the broader trend remains cautious. Momentum indicators reflect a sideways bias, although bullish crossovers on the daily RSI and Stochastic indicators suggest limited immediate downside risk. The next few trading sessions will be pivotal in determining whether the Nifty is poised for a meaningful rebound or merely experiencing a temporary pause.
In terms of stock recommendations, Shah highlighted Radico Khaitan and Karur Vysya Bank as potential picks. Radico Khaitan is showing strong bullish momentum, trading above key moving averages, while Karur Vysya Bank has recently broken out of a consolidation phase, indicating a shift towards bullish sentiment. Investors are advised to monitor these stocks closely as they may present attractive entry points.
Looking ahead, the upcoming support and resistance levels will be crucial in shaping the index's trajectory. A decisive move above the 22,800 level could pave the way for further gains towards 23,100 and beyond. Conversely, a break below 22,200 could reignite bearish trends, exposing the index to additional weakness. The market's direction will become clearer in the coming sessions as traders assess the evolving landscape.
