Nifty May Reach 25,000 If 24,700 Level is Broken, Predicts SBI Securities Analyst Sudeep Shah

Market Outlook: Bullish Momentum Expected to Sustain

The Nifty 50 index is likely to sustain its pullback rally in the near term, driven by favourable sectoral trends and strong technical setups, according to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.

Key Resistance and Support Zones

The immediate resistance for the Nifty 50 is placed in the 24,650–24,700 zone. A decisive breakout above 24,700 could open the path towards 25,000 and subsequently 25,200. On the downside, the 24,050–24,000 range will act as a key support zone, with holding above 24,000 crucial for the continuation of the current upmove.

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Broader Market Participation

The leadership in the market is shifting away from the benchmark Nifty 50, with the Nifty Midcap 100 and Nifty Smallcap 100 witnessing a sharp upmove and outperforming the frontline index. Both indices have reclaimed their key moving averages, indicating improving market breadth.

Technical Indicators Supporting the Rally

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The Nifty 50 has managed to hold above its 50-day EMA over the last three sessions, with short-term averages trending upward and the decline in the 100 and 200-day EMAs losing momentum. Indicators are also supportive, with RSI positioned above 57 and rising, and the MACD histogram continuing to indicate strengthening bullish momentum.

Bank Nifty Outlook

The banking benchmark Bank Nifty concluded the week on a positive note, signaling the continuation of its ongoing pullback rally. However, over the past three trading sessions, the index has struggled to deliver a decisive breakout above its 200-day EMA, suggesting consolidation around a key long-term resistance level.

Top Stock Picks

Avenue Supermarts (DMART) has shown strong bullish intent after a sharp 26 percent pullback from its March lows. The stock has broken out decisively on strong volumes, with rising ADX and expanding Bollinger Bands indicating strengthening momentum and increasing volatility in favour of the bulls.

FMCG Sector Outlook

The Nifty FMCG index appears to be showing early signs of a bottoming-out after its recent corrective phase, backed by a decisive breakout on Friday. The index moved past the 48,483–47,285 consolidation range and closed with a strong gain of 2.65 percent, indicating renewed buying interest.

Stocks to Avoid

Colgate Palmolive may not be a good buy at current levels, as it has reclaimed its 20-, 50, and 100-day EMAs but still needs to break above its 200-day EMA in the Rs 2,190–2,200 zone.

NAVA has delivered a horizontal trendline breakout on the daily chart, supported by strong momentum indicators, and is likely to continue its uptrend as long as it holds above the Rs 670–665 zone.

Aditya Infotech remains in a strong uptrend but is overbought, with RSI at 84 and ADX near 51 suggesting a near-term throwback or consolidation.