As per Bajaj Broking Research, benchmark indices traded within a narrow range and ended flat on a volatile weekly expiry day. However, the Nifty posted strong monthly gains of over 3%, marking its second consecutive month of gains. On the day, the Nifty ended marginally lower, slipping 1.75 points or 0.01% to close at 24,334.20. Sector-wise, the Realty index gained nearly 2%, while the Telecom index rose by 1%. On the other hand, the Media and PSU Bank indices declined by 2% each, while IT, Bank, Consumer Durables, and Capital Goods sectors all slipped around 0.5%. In the broader market, the BSE Midcap index dropped 0.72%, and the BSE Smallcap index fell 1.74%. 

Nifty Outlook

Index traded in a range with high volatility and closed on a flat note. In the process it formed a high wave candle signaling consolidation for the second session in a row after Monday’s strong up move.Going ahead, Nifty is expected to extend consolidation in the range of 24,550-23,800. With 23,800 being the confluence of last week’s low and recent breakout area. While 24,550 is the 61.8% retracement of the entire decline (26,277-21,744).

We believe the current consolidation will help the index work off the overbought condition developed after the recent strong rally. Stock specific action will continue to remain in focus as we progress through the Q4 earnings season.Volatility is expected to stay elevated due to ongoing geopolitical tensions, developments related to tariffs, and the unfolding Q4 earnings season and major US economic data points.

Bank nifty OutlookBank

Nifty formed a bear candle with a lower high and lower low signaling profit booking for the second session in a row after Monday’s strong up move. Index is seen consolidating in a 2000 points range in the last 6 sessions after the recent strong rally of 5500 points or 11% in the preceding 6 sessions.A sustained move above the recent high of 56,098 could trigger further upside toward the 56,800 levels in the coming sessions. However, if the index fails to surpass this level, the index is likely to extend the last 5 sessions consolidation within the 54,000–56,000 range, helping to ease the overbought conditions created by the recent sharp rally.

On the downside, key support is seen between 54,000-53,500, which corresponds to the gap-up region and the previous significant breakout zone. Volatility is expected to stay elevated due to ongoing geopolitical tensions, developments related to tariffs, and the unfolding Q4 earnings season.