NIFTY Index Chart Analysis

Indian benchmark indices have largely moved sideways over the past fortnight as investors weighed geopolitical uncertainty against the early trends from the earnings season. The first phase of consolidation began after the Nifty 50 formed a large bearish candle on July 8. The index remained within the range of that candle for nearly six trading sessions as global cues stayed uncertain and the quarterly earnings season began with TCS results. A recovery followed, with the index moving above 24,300 on Friday, July 13. However, the rebound did not lead to a sustained directional move. The Nifty has once again entered a consolidation phase and has remained within the range of Friday’s large bullish candle. [EasyDNNnews:PaidContentStart]

The Nifty opened Tuesday’s session with a negative bias and remained confined to a narrow 127 point range. It traded almost entirely within the previous session’s high and low before closing below the 24,200 mark. The day’s price action formed a small red candle with shadows on both sides, indicating a lack of conviction among buyers and sellers. The 24,135 level has now been tested twice over the past two sessions. However, the index has not formed a lower low and continues to trade above the 20 day, 50 day and 100 day moving averages. The broader price structure, therefore, does not yet point to a trend reversal. For the second consecutive session, the Nifty remained within the range of Friday’s bullish candle. This suggests that the current consolidation could continue unless a strong domestic or global trigger pushes the index out of the range. Until then, price movement is likely to remain restricted and stock specific action may dominate the market.

Immediate support in the near term is placed at 24,135. A sustained move below this level could take the index towards 24,099, which is the low of Friday’s bullish candle. A break below 24,099 could weaken the short term structure and increase the possibility of a decline towards 23,785, the lower end of the broader trading range. On the upside, the index must sustain above 24,260 to regain momentum. A decisive move beyond this hurdle could lead to a test of the upper end of Friday’s candle. A breakout from either side of Friday’s range is likely to provide the next directional signal. The broader range for the index remains between 23,785 and 24,531.

Above this zone, the intermediate swing high is placed at 24,602. A weekly close above this level would strengthen the technical structure and improve the chances of the index entering a confirmed long term uptrend. Technical indicators continue to reflect the absence of a clear trend. The 50 day moving average has flattened, indicating that the medium term momentum has slowed.

The MACD and signal lines are moving parallel to each other, while the RSI stands near 54, firmly within the neutral zone. Together, these indicators suggest that neither buyers nor sellers currently have a decisive advantage. A clear breakout from Friday’s range is required before taking a strong directional view on the index.

Market participants may continue to follow a balanced and selective approach over the next fortnight. The repeated Defence of the support zone has improved the near term outlook, but the index is also approaching a resistance cluster where profit booking may emerge. Fresh buying may be considered in stocks displaying strong relative strength, healthy volumes and improving technical structures rather than chasing the index near resistance. As long as the Nifty remains above 23,800, the recovery bias is likely to remain intact. However, the 24,300 to 24,531 zone will be crucial. Price action around this area is expected to determine whether the index resumes its upward move or remains confined to the broader consolidation range.

STOCK RECOMMENDATIONS
City Union Bank ................................ BUY ............................ CMP ₹230.20
BSE Code : 532210
Target 1 .... ₹248 
Target 2 ..... ₹255 
Stoploss....₹212 (CLS)

City Union Bank, founded in 1904 and headquartered in Kumbakonam, Tamil Nadu, is a private sector lender with a history spanning more than 120 years. The bank primarily serves MSMEs, SMEs and retail customers. As of December 31, 2025, it operated through 901 branches and 1,678 ATMs, supported by a workforce of around 8,573 employees. Its business remains concentrated in South India, with Tamil Nadu contributing nearly 67 per cent of total advances as of March 31, 2025.

On the technical front, the stock broke out of a four month horizontal resistance zone in early July. Since then, it has consolidated above the breakout level and formed a base, indicating that the earlier resistance may now act as support. During the latest session, the stock moved above the base pattern’s pivot level but failed to sustain the breakout. However, the rise in trading volume suggests improving buying interest.

The 14 period RSI has shifted into the super bullish zone and continues to move higher, while the daily MACD has generated a bullish crossover. The stock is trading above all its key moving averages. Its Relative Strength Rating of 84 reflects strong outperformance, while a Buyer Demand rating of B+ points to sustained accumulation. The stock may be considered above the breakout level, with a stop loss at ₹212 and targets of ₹248 and ₹255.

Rain Industries .................................... BUY ........................... CMP ₹219.00
BSE Code : 500339
Target 1 ...... ₹240 
Target 2 ..... ₹245 
Stoploss.....₹204 (CLS)

Rain Industries Limited is a global producer of calcined petroleum coke, coal tar pitch and a range of basic and speciality chemicals. The company operates across three major business segments: carbon, advanced materials and cement. Over the years, it has expanded its international presence through capacity additions, acquisitions and operational integration across key markets.

On the technical front, the stock has broken out of a cup shaped pattern on the daily chart. The breakout was accompanied by a sizeable bullish candle and a sharp rise in trading volume, indicating strong buying interest. The stock is trading above all its key moving averages, which are aligned in a bullish sequence and continue to trend higher. The relative strength line has reached a fresh one year high, while the Relative Strength Rating stands at 92. This indicates that the stock has outperformed most of its peers in recent months.

Momentum indicators also remain supportive. The 14 period RSI has shifted into the super bullish zone, while the daily MACD continues to trend higher after taking support near its nine period signal line. Considering the breakout, volume support and improving momentum, the stock may be bought with a stop loss at ₹204 for targets of ₹240 and ₹245.

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