Nifty at Crossroads : Bounce or Beakdown?

Markets Overview

The week was shortened to four trading days, but it turned out to be an important one. After an extended stretch of weakness—nine consecutive sessions of red candles—the market finally found some relief midweek. Wednesday provided the much-needed turnaround, and Friday acted as a follow-up day, adding confidence that buyers were finally stepping in. This brief shift after persistent selling shows how oversold markets can attract support when selling pressure exhausts itself, and how even short weeks can pack in decisive moves.

Looking closely at the daily chart of Nifty, the index seems to be repeatedly testing a critical support band between 24,300 and 24,600. Over the past six months, every attempt to break below this zone has failed, which highlights its importance as a long-term base. The more times this zone holds, the stronger it becomes as support. However, the flip side is also true—if the market decisively breaks below it, the fall could be sharp and significant. For now, the likely path is sideways action around this support until a fresh tailwind emerges to push the market higher. This ongoing consolidation suggests patience is required, as the market builds energy for the next big move.

Latest Daily Byte

The week has come to an end, and the last two sessions have shown a strong pullback. Before this, the market had gone through nine continuous red candles heading down. The GDP numbers and the RBI’s statement that credit offtake may finally start to rise gave new hope. Many brokerage houses also upgraded their ratings on banking and consumption stocks, which helped revive interest in these sectors.

Metals also performed strongly today with copper, aluminum, and zinc doing very well in the commodity space. This makes it look like commodity-led inflation could be a possible outcome of current global policies.

Rebalance Update for the week