The Nifty 50 ended last week above its recent trading range despite late-session profit booking, signalling that the broader market structure remains intact ahead of Monday's trade. The benchmark closed at 24,270.85, its highest closing level since May 7, after breaking out of the range that had held it for nearly two weeks.
The breakout comes even though the index surrendered nearly 100 points from the day's high after failing to sustain its gap-up opening. Market participants will now watch whether the move attracts follow-through buying or slips back into the previous range.
Daily Trend Holds Despite Late Selling
The Nifty opened higher on the final trading session of the week but traded within the first hour's range for most of the session. Selling pressure emerged in the final phase of trade, dragging the index lower and leaving it with a red candle on the daily chart, as it closed below its opening level.
Despite the intraday decline, the index continued to post higher highs and higher lows, indicating that the broader trend remains intact.
Weekly Charts Point To Improving Momentum
The weekly chart showed a green candle, with the Nifty closing above the previous week's high and erasing the hesitation seen over the preceding two weeks. Weekly trading volumes were above the 20-week average and reached their highest level in the past four weeks. The 10-week moving average is also nearing a crossover above the 20-week average, a development viewed as a positive technical signal.
Overall, the charts indicate that the market has moved out of a range-bound phase and into a stronger technical setup.
Support And Resistance Levels For Monday
The July 3 gap between 24,195 and 24,252 is expected to serve as the immediate support zone.
Below that, the 100-day moving average near 24,100 remains the next important support. As long as the index holds above that level, the prevailing trend is expected to remain positive, with buy-on-dips likely to remain the preferred approach.
On the upside, immediate resistance lies in the 24,355-24,380 range. A sustained move above that zone could pave the way for an advance towards 24,482, the swing high recorded on May 7, 2026.
Momentum Indicators Strengthen
Momentum indicators have continued to improve.
The daily 14-period Relative Strength Index (RSI) has crossed above 60, while the weekly RSI has moved above 50. The weekly MACD histogram points to strengthening momentum, and the daily MACD has crossed above the zero line, supporting the view that the short-term trend has turned more favourable.
Stock In Focus: Cosmo First
Cosmo First rose more than 6% on Friday, supported by higher trading volumes that exceeded both the 10-day and 30-day averages on the NSE.
The stock is approaching a breakout from a saucer-like pattern that has developed over the past month. It is also trading above key short-term and long-term moving averages, indicating continued strength in the prevailing trend.
Technical indicators remain supportive. Bollinger Bands have started expanding, pointing to higher volatility in favour of the current move. The daily 14-period RSI has shifted into the super-bullish zone, while the daily MACD remains in an uptrend after rebounding from its nine-period average.
Sustaining above the Rs 862-Rs 865 zone will remain important for the stock. If it holds above that range, the next upside targets are Rs 924-Rs 955, while Rs 802 remains the suggested stop-loss level.
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