Stock market tday : nifty view
Sudeep Shah, Head of Technical and Derivatives Research, SBI Securities, said that the holiday season clearly had an impact on market activity last week, with the benchmark Nifty remaining in a small range of 227 points throughout, which was its smallest weekly range since November 2023. The index peaked at 26,236 and then declined slightly, still closing the week with a modest gain of 0.29%. On weekly timeframe, Nifty formed Gravestone Doji which shows uncertainty at higher levels due to low participation.
One notable thing was that India VIX fell to its lowest ever weekly close, which shows an unusual decline in volatility and increasing uncertainty in the market. Historically, long periods of low volatility are often indicative of larger directional moves, making ongoing stability important.
Even though the headline indices remained sideways, small-medium stocks showed strength. There was a strong rise in Nifty Smallcap 100. This was supported by a sharp recovery in many previously underperforming small-cap stocks. Meanwhile, niche segments like Railways, CPSEs and PSEs witnessed good gains, indicating that liquidity and buying interest is gradually shifting away from Nifty to certain pockets of the market.
Going forward, the zone of 26,200–26,250 can become an important resistance for Nifty. A strong breakout above 26,250 could open the way for an uptrend towards 26,500 and then 26,650 in the short term. On the contrary, the band of 25,900–25,850 will remain an important demand zone and important support on the downside.