Global geopolitical developments and rising crude oil prices contributed to a volatile yet resilient trading week for Indian equity markets. While Nifty started the week flat, it remained extremely volatile due to rising crude oil prices and escalating US-Iran geopolitical tensions, while Bank Nifty started the week subdued but saw strong buying interest at lower levels, which led to a sharp rebound to settle at 61,172, up 985 points in the previous week.
Nifty Weekly Outlook
“On the weekly chart, Nifty formed a small bullish candle with an upper shadow, highlighting selling pressure near the psychological 26,000 mark. For further upside, the index must decisively reclaim the 40-day EMA at 25,665, which could open the path towards 25,850-26,000. On the downside, the 25,375-25,325 zone- confluence of the previous week’s low and the 200-day SMA-is expected to act as strong support, followed by 25,250-25,000 as the next cushion,” commented the research analysts of Axis Securities.
“The broad range established in the first week of February (26,341-24,679) continues to serve as the pivotal reference zone for the next decisive move. For the week, we expect Nifty to trade in the range of 26,000-25,000 with mixed bias. The daily RSI remains flat around the 50 mark, oscillating near its reference line, signalling a lack of clear directional momentum,” they further stated.
Bank Nifty Weekly Outlook
“On the weekly chart, the index formed a robust Bullish Engulfing candlestick pattern. In the context of an ongoing uptrend, this formation signals trend continuation and reinforces the underlying strength. Technically, a decisive move and sustained close above 61,500 could trigger fresh buying momentum, paving the way towards 61,800-62,300 levels. Conversely, a break below 61,000 may invite profit booking, dragging the index towards 60,500-60,000,” said the technical research analysts of Axis Securities.
“For the coming week, Bank Nifty is expected to trade within the 62,300- 60,000 range with a positive bias. Momentum indicators further support the constructive outlook, with the weekly RSI and Stochastic oscillator rebounding from oversold territory and holding above their respective reference lines, signalling strengthening momentum,” they further added.
Stocks To Buy This Week
Weekly technical outlook and picks by Axis Securities.
Aditya Birla Sun Life AMC
Buy Range: 905-887, Stop loss: 855, Upside: 9%-12%, Holding Period: 3 to 4 weeks
- On the weekly chart, ABSLAMC remains in a strong uptrend, consistently forming higher highs and higher lows while holding above its upward-sloping trendline.
- The stock has delivered a decisive breakout above the medium-term multiple resistance zone around 918, supported by a strong bullish candle, signalling continuation of the uptrend.
- Further strength is confirmed by a close above the weekly upper Bollinger Band, generating a fresh buy signal.
- Momentum indicators remain supportive, with the weekly RSI decisively breaking above horizontal resistance near 60 and crossing its reference line, reinforcing the bullish outlook.
- The above analysis indicates an upside toward 978-1,000 levels.
Cummins India
Buy Range: 4680-4586, Stop loss: 4400, Upside: 10% – 12%, Holding Period: 3 to 4 weeks
- On the weekly chart, CUMMINSIND has delivered a decisive breakout above the Rounded Bottom pattern formed since Dec’25, clearing the 4,615 level with a strong bullish candle, thereby confirming the continuation of the medium-term uptrend.
- The breakout is supported by a sharp surge in volumes, highlighting robust market participation.
- The stock continues to trend within a rising channel, recently rebounding from the lower band and now advancing toward the upper band.
- Additionally, the weekly RSI has generated a positive crossover above its reference line, reinforcing the buy signal and strengthening the bullish outlook.
- The above analysis indicates an upside toward 5,100-5,200 levels.
KEI Industries
Buy Range: 4700-4606, Stop loss: 4400, Upside: 11%-13%, Holding Period: 3 to 4 weeks
- On the weekly chart, KEI has decisively broken above the downward-sloping trendline at 4,570, which was in place since mid-Jun’24, signalling a structural shift in momentum.
- The stock is firmly positioned above its key 20, 50, 100, and 200-day SMAs, underscoring underlying strength and a positive bias.
- A close above the weekly upper Bollinger Band has further generated a fresh buy signal.
- Momentum indicators add conviction to the move, with the weekly RSI crossing above both its reference line and the 50 mark, reinforcing the bullish outlook.
- The above analysis indicates an upside toward 5,159-5,250 levels.
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