The Nifty 50 index extended its winning run for the second consecutive week, gaining 1.65% and recording its sharpest weekly rise in 10 weeks. The index also reclaimed the important psychological level of 24,000 and closed at a fresh six-week high.
During the week, Nifty moved above its previous swing high of May 26 and came close to the 100-DMA. However, profit booking in the final session trimmed part of the gains, leaving the index near an important resistance area.
Weekly Chart Shows Strength with Caution
On the weekly chart, Nifty formed a long-legged Doji-like candle with a higher high and higher low. This indicates that buyers remained active, but selling pressure also emerged at higher levels.
The index closed below the 20-week average but stayed above the 10-week average. More importantly, last week's low was placed near the 10-week average, making 23,800 a key support level in the short term. As long as Nifty holds above this level, the broader structure remains constructive.
The weekly RSI is placed near 48 and is moving higher, while the weekly MACD has generated a fresh bullish signal. On the daily chart, the MACD line remains above the zero line, supporting the improving momentum.
Daily Chart: Breakout Needs Follow-Through
On the daily chart, Nifty broke out of a sloping channel during the week. However, Friday's correction pulled the index back into the channel, showing that follow-through buying is still required.
The index opened above the 50-DMA at the start of the week and stayed above it throughout the period. The 50-DMA has now turned upward, while Nifty is trading around 0.70% above it. The widening Bollinger Bands also point to rising price expansion.
The immediate support is placed near 23,900, followed by the stronger support zone of 23,800. A close below 23,800 may weaken the short-term structure and open the possibility of a retest of the gap created on Monday, June 15, 2026, placed between 23,645 and 23,818.
Nifty Midcap 100 Recorded Highest Ever Close
The broader market remained stronger than the benchmark index. The Nifty Midcap 100 closed at its highest level ever, reflecting continued buying interest beyond large caps. The Nifty Microcap 250 also closed above its previous high of July 2025, confirming broad-based participation.
This outperformance suggests that stock-specific action remains healthy, even as Nifty faces resistance at higher levels.
Key Levels to Watch for Nifty
Nifty now faces a strong resistance zone between 24,090 and 24,210. This range is important because it includes the upper end of the sloping channel, the previous week's high and the 100-DMA.
A decisive close above 24,210 could strengthen the breakout and open the path towards 24,482, which is the swing high of May 7, followed by 24,602, the swing high of April 21.
On the downside, 23,900 is the first support, while 23,800 remains the crucial level to watch. Holding above this zone will keep the short-term trend positive.
Strategy for the Week: Stay Selective, Avoid Chasing Moves
The setup remains positive, but not without resistance. The sharp fall in volatility and the index's ability to defend key support levels are encouraging. At the same time, the resistance cluster near 24,090-24,210 should not be ignored.
Traders should avoid aggressive positions on either side until Nifty clears this zone with conviction. Fresh buying should remain selective and focused on stocks showing relative strength, strong volumes and improving momentum. Existing gains should be protected, especially in stocks that have already seen a sharp run-up.
Stock to Watch: Eternal
Eternal has witnessed a breakout from a flat base, supported by above-average volumes. The Relative Strength line continues to rise, indicating improving outperformance against the broader market. After a period of contraction, the Bollinger Bands have started expanding, suggesting a pickup in momentum.
The stock remains well placed on the moving average front. The 20-DMA is trending higher, while the stock is trading 5.96% above its 50-DMA. The moving average ribbon also remains in an uptrend, reinforcing the positive structure.
Momentum indicators are aligned in favour of the bulls. The MACD has generated a bullish crossover and is placed above the zero line. The 14-period daily RSI has moved above 60 and continues to trend higher. The KST and Stochastic RSI also remain positive, while the Elder Impulse System has formed a strong bullish bar.
Overall, Eternal has registered a bullish breakout with improving momentum and volume support. Sustenance above Rs 265-266 would keep the setup positive, with potential upside towards Rs 284-292. A stop loss may be maintained at Rs 237.
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