NIFTY Index Chart Analysis

The Nifty 50 ended its two-week winning streak last week, declining 0.83 per cent. The index closed lower in four of the five trading sessions and also finished below the previous week’s Doji candle, adding to the negative technical setup. Weakness continued into the first two sessions of the current week, extending the losing streak to six consecutive sessions. From its August 3 high of 24,774, the Nifty has corrected by more than 600 points and slipped below the 50 per cent retracement level of the previous upswing. The index is now trading just 0.13 per cent above its 50 DMA. It has also failed to sustain above the previous session’s high for ten straight sessions, indicating that the corrective phase is still underway.[EasyDNNnews:PaidContentStart]

Despite the recent decline, the pace of the correction remains relatively measured. The index has retraced just over half of the nearly 1,150 point rally recorded over the preceding seven sessions from lows of July 24 to high of August 3. This suggests that the broader move is still in a consolidation phase rather than showing a sharp reversal. Immediate support is placed between 23,960 and 24,137, where several technical levels converge. The zone includes the July 29 gap area, the 61.8 per cent retracement level of the previous upswing, the 50 DMA and the rising trendline drawn from the April 2 low.

On the upside, a decisive close above the previous session’s high would be an important early sign that the corrective phase is losing momentum. Immediate resistance is placed in the 24,450 to 24,480 zone. A sustained move above this range could bring the August 3 high of 24,774 back into focus. From a broader structural perspective, the Nifty has continued to form higher lows since April 2026 despite geopolitical uncertainty and volatility in crude oil prices. As long as the index holds above the previous swing low of 23,600, the broader positive structure remains intact.

On the weekly chart, the Nifty continues to move within a broad multi month consolidation range. The rebound from the July 24 low brought the index back towards a cluster of moving averages, but it has not yet resulted in a meaningful breakout. The 50 week moving average, currently near 24,746, remains an important hurdle, while the 20 week moving average near 24,025 provides an important support reference. A sustained move above the 24,450 to 24,774 zone would strengthen the intermediate trend.

For the coming fortnight, the 23,950 to 24,000 area on the downside and the 24,450 to 24,774 zone on the upside remain the key levels to track. The decline in India VIX indicates relatively subdued volatility expectations, although it does not provide a clear directional signal on its own. A breakout above 24,774 would strengthen the technical setup, while a sustained move below the 23,950 to 24,000 support zone could extend the correction towards 23,600. Until either side is decisively breached, the Nifty is likely to remain within its broader consolidation range.

STOCK RECOMMENDATIONS
L&T FINANCE .............................. BUY .................................... CMP ₹324.80
BSE Code : 533519
Target 1 .... ₹340 
Target 2 ..... ₹356 
Stoploss....₹305 (CLS)

L&T Finance Limited (LTF), part of the L&T Group, is a Mumbai based NBFC serving. Its lending portfolio spans a range of retail financing products and caters to varied borrowing requirements. On the technical front, the stock has broken out of a symmetrical triangle with strong volume support. Tuesday’s rise was accompanied by higher volumes, adding strength to the breakout. Its Relative Strength line is close to a new high, reflecting outperformance against the broader market.

The trend across key indicators remains positive. Both short and long term moving averages are rising, while the moving average ribbon continues to point upwards. The Bollinger Bands have started expanding, indicating an increase in price momentum. The MACD has generated a fresh bullish crossover, while the 14 period daily RSI has moved into bullish territory. The Elder Impulse System has also formed a strong bullish bar. The stock is now trading close to its previous pivot after confirming the triangle breakout. A sustained move above ₹325 could open the way towards ₹340, while ₹305 remains the key stop loss level. If the stock moves above ₹340, the next level to watch is ₹356.

TCPL PACKAGING .............................. BUY ........................... CMP ₹4,230.10
BSE Code : 523301
Target 1 ...... ₹4,600
Target 2 ..... ₹4,740 
Stoploss.....₹3,915 (CLS)

TCPL Packaging is one of India’s leading packaging companies and a major standalone converter of paperboard. Its product portfolio includes folding cartons, printed blanks, litho laminated cartons, plastic cartons, blister packs and shelf ready packaging.

The stock witnessed a sharp rally between its August 7 low and August 12, gaining more than 40 per cent during the period. After this rapid rise, it entered a corrective phase and retraced around 38 per cent of the advance. The stock formed a bullish candle on Tuesday, indicating renewed buying interest after the pullback.

It continues to trade above its 20, 50, 100 and 200 DMA, keeping the broader trend positive. The stock has an EPS Rank of 74, while its Relative Strength Rating stands at 89, indicating strong performance compared with other stocks. Buyer Demand is rated A minus, reflecting the recent accumulation seen in the counter.

Momentum indicators also remain firm. The 14 period RSI is moving higher in the strong bullish zone. On the weekly chart, the MACD continues to trend upwards and is widening its gap from the 9 period signal line, supporting the prevailing positive momentum. From a technical perspective, ₹3,915 is an important downside level to track, while the next upside zone is placed between ₹4,600 and ₹4,740.

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