Aditya Gaggar, Director of Progressive Shares
Nifty50 is oscillating within the tight range of 25,380-25,580 and forming a Bullish Flag and Pole pattern. A decisive move above the 25,580 mark would confirm a breakout, potentially leading to further upside. The immediate support is placed at 25,380, while resistance stands at 25,580. BankNifty is showing early signs of a potential bearish divergence (although not yet confirmed). A break above 57,600 would nullify the bearish setup, whereas a sustainable move below 56,640 could drag the Index lower towards 56,300. The key support and resistance levels for BankNifty are placed at 56,850 and 57,200, respectively.
We remain positive on OMCs (BPCL, HPCL, and IOC) from the Energy sector as they have already confirmed breakouts. We believe that soon a breakout will occur in the IT sector, which will provide a directional trend.
The Pharma sector is pointing towards a trend reversal, with a breakout from an Inverted Head and Shoulder pattern (Aurobindo Pharma-Falling Channel Breakout, and Glenmark Pharma & Laurus Labs-Rounding Bottom Breakout).
The Metal and PSU Banking sectors are on the brink of an important pattern breakout, and a strong rally could follow once confirmed. The Realty sector displays signs of a trend reversal in the lower timeframe, with a bullish pattern formation; however, a confirmatory move is essential.