The equity markets held their ground this week, with the Nifty once again testing the psychological mark of 25,000 but failing to break past it. Analysts believe sectoral momentum continues to provide support, though the banking space remains a drag on the index.
ET Now, in conversation with Rajesh Palviya, sought clarity on whether the 25,000 resistance would continue to weigh on the markets.
“So, looking at the broader market action there is no disappointment by the market if we analyse most of the sectors. Every sector has shown a good amount of rally throughout the week. Yes, Street was expecting that post this GST 2.0 there could be a runaway gap and then we may see a continuation of up move on the Nifty as well as in the Bank Nifty but yes, 25,000 the major call concentration area acted as a stiff resistance for the market and again, we have witnessed the supply pressure from those level,” Palviya noted.
According to him, the last two to three months have seen the market consolidate between 24,500 and 25,000, with global uncertainties—ranging from geopolitics to tariff moves by the Trump administration—limiting investor appetite.
“The missing part for this momentum, the banking stocks are not contributing to any kind of up move in this market, that is why Nifty is not able to take out 25,000 resistance. So, the structure for Bank Nifty is still on the weaker side, but Nifty is showing sign of giving a breakout of this consolidation range,” he explained.
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On the technical side, Palviya believes the index could see a rally beyond 25,000 in the coming week, provided stop-loss levels of 24,450 on Nifty and 54,300 on Bank Nifty are respected.Sectoral Focus: Automobiles, FMCG, Metals, and New-Age Stocks
Asked about which pockets of the market are worth focusing on, Palviya pointed to four clear themes.
“So, clearly four sectors which are in my mind, which are showing a sign of strength and again, the GST reform will also give the direct benefit to all these sectors and technical structures are also looking very strong. So, first one is automobile, second is FMCG, third one is new-age stocks, and fourth sector which is now showing a sign of strength is metals,” he said.
He suggested these sectors would likely outperform in the near term until Nifty manages a decisive breakout above 25,000.
Stock in Focus: BSE Gains Attention
The spotlight also turned to BSE Ltd., which has been in positive territory after structural changes in expiry days. Palviya highlighted that the stock’s current levels are crucial from a technical perspective.
“So, from the oversold trajectory we have seen pullback action for BSE and today’s close almost coincide with the 20-day moving average supply area which is placed at 2350. So, in the coming week we have to see whether the stock is able to take out 2350 or not. If it is able to cross this level, then maybe some more short covering action we could see in this counter and possible extension of really towards 2400, 2420 we may see in the near-term perspective,” he said, adding that traders should keep a stop-loss at 2250.
Stock Picks for the Week
Among individual recommendations, Palviya remains optimistic on National Aluminium, which has already gained 14% this week.
“If we analyse the weekly structure, it is almost a 12 to 15-week consolidation range breakout. So, looking at the breakout, we believe that this stock has potential to continue further upside. The target where we are projecting is 225, on the downside 207 needs to keep as a stop loss,” he said.
The second pick is Bajaj Finance, where a breakout on the weekly trend line suggests further gains.
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as a Reliable and Trusted News Source“If we analyse the weekly structure, the stock managed to give a breakout of the falling trend line on the weekly chart. Stock has shown a long built up on a week on week basis. So, looking at the data and technical structure, we are holding a bullish view for this counter, projecting a target of 975 on the downside and keep a stop loss towards 915,” he recommended.