NIFTY Index Chart Analysis

The Nifty 50 registered its highest weekly close since the first week of March. August began on a firm note, with the Nifty moving above the previous swing high of 24,602, recorded on April 21, 2026. However, the breakout itself was not the biggest talking point of the week. Much of the attention shifted to the sharp moves witnessed during the newly introduced Closing Auction Session (CAS).[EasyDNNnews:PaidContentStart]

Closing Auction System made its debut on Monday, and the Nifty moved nearly 200 points during the final minutes of the session. A similar development was seen in the following trading session, which also marked the weekly expiry. The index was provisionally seen near 24,460 before eventually settling above the 24,600 mark after the closing auction. These sharp differences between the provisional and final closing levels have sparked considerable discussion among market participants over the impact of the new closing mechanism.

From a technical perspective, the Nifty opened Tuesday's session on a weak note following Monday's strong advance and remained under selling pressure for most of the day. As the decline gathered pace, the index slipped below 24,450 and completely filled the upside gap created on August 3, 2026. Buying interest emerged near the lower levels, helping the index recover a part of its losses towards the close, with the Closing Auction Session once again contributing to the final movement.

Tuesday's price action resulted in an open-equals-high candle with a long lower shadow, suggesting demand around the gap support zone. The index also moved back within the Bollinger Bands after closing outside the upper band on Monday. The pullback filled the recent gap and brought an end to the eight-session upswing. Despite the decline, the broader technical structure remains largely intact, as the Nifty continues to hold around the April 21 swing high of 24,602, effectively retesting the breakout zone.

The index remains above its important short- and medium-term moving averages, including the 20-DMA, 50-DMA and 100-DMA. The major hurdle, however, continues to be the long-term 200-DMA, currently placed near 24,773. Momentum indicators also remain supportive. The 14-period RSI continues to hold in bullish territory, while the MACD suggests that the underlying momentum remains positive. Relative Strength has also started showing improvement, indicating better performance compared with the broader market.

As long as the Nifty sustains above 24,602, the broader structure is likely to remain constructive. However, a decisive close below Tuesday's low of 24,427 would weaken the near-term setup and could lead to renewed selling pressure. On the upside, the 200-DMA near 24,773 remains the immediate resistance. A sustained move above this level could strengthen the ongoing recovery and open the way towards the 24,880-24,940 zone. A breakout above this band could subsequently bring the gap created during the outbreak of the West Asian crisis, between 24,989 and 25,141, into focus.

On the downside, immediate support is placed at 24,427. A failure to defend these levels could extend the correction towards the 20-DMA, currently placed near 24,194, followed by the next support around 24,041. For the next fortnight, market participants may find better opportunities in stock-specific moves rather than chasing the index at higher levels. The broader backdrop has also turned relatively supportive, with FIIs remaining net buyers since July 28. At the same time, softer Brent crude oil prices and a weakening US Dollar Index are providing favourable external cues for emerging markets such as India.

STOCK RECOMMENDATIONS

PIRAMAL PHARMA ............................ BUY ............................ CMP ₹202.40
BSE Code : 543635
Target 1 .... ₹224 
Target 2 ..... ₹235 
Stoploss....₹190 (CLS)

Piramal Pharma Limited (PPL), part of the Piramal Group, is a global pharmaceutical company offering end-to-end solutions through its development and manufacturing facilities across India, North America and the UK.

The stock witnessed a sharp correction of nearly 57 per cent from its November 2024 high to the low recorded in April 2026. It subsequently recovered around 47 per cent before witnessing some profit booking. The decline found support near the 20-week moving average, following which the stock resumed its upward move. More recently, it has crossed above the swing high registered in May 2026, indicating an improvement in the price structure.

On the daily chart, the stock is trading above all its key moving averages. The MACD is trending higher and remains above its nine-period signal average, supporting the positive momentum. The 14-period RSI has also moved above 60 and continues to inch higher, suggesting strengthening momentum. Considering the improving price structure and positive momentum indicators, we recommend buying the stock with a stop loss of ₹190 for targets of ₹224 and ₹235.

HINDALCO INDUSTRIES ..................... BUY ........................... CMP ₹1,012.30
BSE Code : 500440
Target 1 ...... ₹1,067
Target 2 ..... ₹1,108 
Stoploss.....₹981 (CLS)

Hindalco Industries Limited is the metals flagship company of the Aditya Birla Group and has a presence across the aluminium and copper value chains. Its operations span bauxite mining, alumina refining, coal mining, captive power generation and aluminium SMElting, along with downstream businesses such as rolling, extrusions and foils.

On the technical front, the stock has broken out of a 24-day flat base and closed above an important resistance zone. Before entering this consolidation phase, Hindalco had corrected by more than 20 per cent and retraced nearly 61.8 per cent of its March-to-June rally. The recent breakout indicates that the stock may be attempting to resume its broader upward move. Its Relative Strength has improved and indicates outperformance against the Nifty 500. Trading volumes have remained above average for the past three sessions, reflecting stronger buying interest. The stock is also trading above its key short- and long-term moving averages, including the 30-week and 40-week averages.

Momentum indicators continue to support the bullish setup. The Bollinger Bands have started expanding, while the stock has closed above the moving average ribbon. The MACD remains in bullish territory, and the RSI has shifted into a stronger range. Overall, the breakout from the recent consolidation has strengthened the technical structure. A sustained move above ₹1,013 can open the way towards ₹1,067, with a stop loss at ₹981. If the stock decisively crosses ₹1,067, the next upside level could be around ₹1,108.

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