Nifty Under Pressure Amid Sell-on-Rise Market Expectations, SBI Securities Identifies Top Picks

Market Update: Bearish Trend Continues

The Indian stock market remains in a bearish trend, with the Nifty 50 index trading below all major moving averages. A bearish candlestick formation featuring a long upper wick reinforces the notion that rallies continue to attract sellers. The weekly RSI has slipped to 30.22, signaling oversold territory.

Key Support and Resistance Levels

The 22,850–22,800 zone is expected to provide immediate support, with a convincing breakdown below this level potentially opening the door for a slide toward 22,500. On the upside, the 23,420–23,460 band is likely to act as a stiff resistance zone, where any recovery attempts are expected to encounter fresh selling pressure.

Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data

Bank Nifty Outlook

The Bank Nifty has fallen for four consecutive weeks, reflecting sustained weakness and relentless selling pressure in the banking sector. The bearish case is further strengthened by the fact that the index has closed below its 100-week EMA for the second week running. Technical momentum continues to side with the bears, with the RSI on both the daily and weekly charts hovering in negative territory and declining further.

Key Support and Resistance Levels for Bank Nifty

The 54,300–54,400 band is expected to serve as a formidable resistance zone. Until the index manages a decisive close above 54,400, the path of least resistance remains to the downside. In such a scenario, Bank Nifty could gradually slide toward the 52,200 support level, with the possibility of the decline extending further to 51,500 over the short term.

Read also: US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline

FIIs Positioning

Foreign Institutional Investors (FIIs) remain firmly in a risk-off mode, as reflected in their persistent selling streak. They have offloaded Rs 5,518 crore in the cash market, extending their selling to 16 consecutive sessions, with cumulative outflows nearing Rs 97,783 crore, signaling a clear reduction in India exposure.

Recommendations

Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, recommends Bajaj Consumer Care and Belrise Industries for next week. Both stocks have shown improving momentum and underlying strength, making them potential buys in the current market conditions.