Market Analyst Warns of Potential Selling Pressure if Nifty 50 Index Falls Below 23,050

Nifty 50 Likely to Remain in Consolidation Phase

The Nifty 50 is expected to remain in a consolidation phase in the immediate future, according to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities. This view is based on the index's recent price action and technical indicators.

Downside Risk

On the downside, the decisive breakdown below 23,050 may intensify selling pressure and drag the index towards 22,700, with the possibility of extending further towards 22,500 in the short term. This support band will be closely monitored by market participants.

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Upside Potential

On the upside, the immediate hurdle is placed in the 23,550–23,600 zone. A convincing and sustained move above 23,600 would indicate improving momentum and could trigger a relief rally towards 23,900 initially, followed by 24,100 in the near term. Until either of these key levels is breached, traders can expect Nifty to remain range-bound with stock-specific opportunities dominating market action.

Bank Nifty's Relative Strength

The banking benchmark, Bank Nifty, continued to exhibit relative strength compared to the broader market during the previous week and concluded the period with gains. On the weekly chart, the index formed a small-bodied candlestick accompanied by a long lower shadow, indicating strong buying support at lower levels.

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Stock Recommendations

The following stocks are recommended for accumulation in the coming week:

• Nuvama Wealth Management: Accumulate in the Rs 1,575–1,560 range, with a stop-loss at Rs 1,520. The stock has the potential to move towards the Rs 1,660 levels in the near term.
• Fortis Healthcare: Accumulate in the Rs 970–960 range, with a stop-loss at Rs 920. The stock has the potential to move towards the Rs 1,030 level in the near term.

Adani Green Energy and Adani Energy Solutions

Yes, we expect both Adani Green Energy and Adani Energy Solutions to extend their upward momentum in the coming sessions. The stocks have recently broken out of a consolidation phase and witnessed a strong rebound.

Himadri Speciality Chemicals and Acutaas Chemicals

Yes, we remain bullish on both Himadri Speciality Chemicals and Acutaas Chemicals at current levels. Both stocks have witnessed a breakout on the daily chart, supported by strong volume participation, which adds credibility to the move.

ACME Solar Holdings

From a technical standpoint, ACME Solar Holdings has exhibited strong bullish momentum following a breakout, indicating a well-established uptrend. However, the stock is currently nearing overbought territory, suggesting the possibility of near-term consolidation or profit booking. Hence, we advise avoiding fresh positions at current levels and waiting for a healthy pullback before considering the next leg of the upmove.