NIFTY Index Chart Analysis

The Nifty 50 extended its winning streak for the second straight week, rising 1.65 per cent and posting its sharpest weekly gain in 10 weeks. The index also reclaimed the key psychological mark of 24,000 and ended at a fresh six-week high.[EasyDNNnews:PaidContentStart]

On the weekly chart, Nifty formed a longlegged Doji-like candle with a higher high and higher low. This suggests that buyers remained active, although profit booking was visible at higher levels. The index closed above its 20-week average and the 10-week average. Since last week’slow was placed near the 10-week average, the 23,800 zone now becomes an important short-term support. As long as Nifty holds above this level, the broader structure remains constructive.

On Monday, Nifty opened with a gap-up and tested the June 18 high. However, it failed to sustain at higher levels and closed near about opening mark. After the first hour of trade, the index kept forming lower highs, showing some fatigue near resistance. Still, it closed above the previous day’s high, keeping the broader trend intact.

The day’s price action resulted in a Doji-like candle, as the close was near the opening level. The session’s trading range stood at just 95 points, making it the second-lowest daily range of 2026 so far. The next session’s close will be important to understand the implication of this Doji formation. A close below the June 22 low would confirm weakness and may drag the index towards 23,800. It could open the possibility of a retest of the gap created on Monday, June 15, 2026, placed between 23,645 and 23,818.

On the upside, Nifty faces a strong resistance zone between 24,090 and 24,210. This range is crucial as 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 push the index towards 24,482, the swing high of May 7, followed by 24,602, the swing high of April 21.

The broader market continued to outperform the frontline indices last week. The Nifty Midcap 100 closed at a lifetime high, reflecting sustained buying interest beyond large caps. The Nifty Microcap 250 also closed above its January 2025 high, confirming broadbased participation. This indicates that stock-specific action remains healthy, even as Nifty approaches an important resistance cluster.

Overall, the setup remains positive but not one-sided. The sharp fall in volatility and Nifty’s ability to defend key support levels are encouraging signs. However, the resistance zone of 24,090–24,210 remains a key hurdle.

For the coming fortnight, 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. At the same time, existing gains should be protected, especially in counters that have already seen a sharp run-up.

STOCK RECOMMENDATIONS

SHRIRAM PISTONS & RINGS LTD. ................ BUY ................... CMP ₹3,802.00
BSE Code : 544344
Target 1 .... ₹4,300 
Target 2 ..... ₹4,500 
Stoploss....₹3,490 (CLS)

Shriram Pistons & Rings Limited is one of India’s leading manufacturers and exporters of precision engine components, including pistons, piston pins, piston rings and engine valves. The company is a key Tier-1 supplier to domestic and global OEMs across passenger vehicles, commercial vehicles and two-wheelers.

On the technical front, the stock has recently broken out of a well-formed flat base after nearly eight weeks of consolidation. It has decisively crossed its pivot level of ₹3,765, signaling renewed strength. The breakout has been supported by constructive price and volume action, indicating strong participation in the move.

From an O’Neil methodology perspective, the stock shows a favourable setup. It has an EPS Rank of 79 and an RS Rating of 86, reflecting its outperformance compared with several other stocks. Buyer Demand stands at A, supported by recent buying interest. Its Master Score of B also indicates a strong overall profile.

The 14-period RSI remains in bullish territory, while the daily MACD is sustaining above its nine-period average, confirming the positive bias. Considering the above factors. It can be considered with a stop loss of ₹3,490 for an upside target of ₹4,300–4,500.

ZYDUS WELLNESS LTD. ............................. BUY ...................... CMP ₹537.00
BSE Code : 531335
Target 1 ...... ₹575 
Target 2 ..... ₹600 
Stoploss.....₹512 (CLS)

Zydus Wellness Limited is a prominent health and wellness company with a strong consumer portfolio across nutrition, skincare and dietary management. Its key brands include Sugar Free, a market leader in sugar substitutes; Complan, a nutritional health drink; Everyuth, a skincare range; and Nutralite, a healthier alternative to butter. The company continues to benefit from rising consumer awareness around health, wellness and better lifestyle choices. The stock has witnessed a breakout from a falling trendline that had been in place for over two months. The breakout was backed by strong volumes, with total traded volume on the NSE standing at 13.63 lakh shares, nearly four times its 10-day average volume. This reflects higher participation in the direction of the trend.

The stock is trading above all key moving averages, including the 20-DMA, 50-DMA, 100-DMA and 200-DMA, indicating strength across short, medium and long-term timeframes. The daily MACD remains in an uptrend and has rebounded after taking support near its nine-period average, which supports the positive setup. The 14-period daily RSI has also moved above the 60 mark, adding further strength to the momentum.

Overall, Zydus Wellness has registered a bullish breakout backed by robust volumes. As long as the stock sustains above ₹538, the bias is likely to remain positive. On the upside, it may test ₹575 – ₹600 in the medium term. A stop loss can be placed at ₹512.

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