NIFTY Index Chart Analysis

Last week, the Nifty 50 extended its decline for the third consecutive week, with trading activity remaining elevated compared to the previous week. The index also ended its two-month winning streak, falling 1.24 per cent in August. The month marked the introduction of the new Closing Auction Session (CAS) mechanism. During August, NSE’s total monthly equity derivatives turnover stood at ₹34.48 lakh crore, the lowest level recorded in calendar year 2026 so far. The moderation in derivatives activity can partly be attributed to behavioural changes following the implementation of CAS, as market participants appeared to reduce their exposure, particularly during the final half-hour of trading. [EasyDNNnews:PaidContentStart]

From a technical perspective, the Nifty 50 closed below its 10-week moving average and continues to trade below its shortterm moving averages, including the 20-DMA and 50-DMA. The 20-DMA remains in a declining trend, while the 50-DMA has started flattening, indicating a lack of strong directional momentum. However, the index managed to find support near its 20-week moving average, which is currently placed around 24,021.

The broader technical setup remains largely unchanged from the previous fortnight, with the index continuing to consolidate within a defined range. The 23,950–24,000 zone continues to act as a crucial support area, while a cluster of important moving averages on the upside is limiting any meaningful recovery. The index remains positioned between these key levels, and a decisive move on either side will be required to establish the next directional trend.

A breakdown below the 23,950-24,000 zone could lead to further weakness, while a sustained move above the 24,400–24,750 region would indicate renewed strength. Until either of these levels is breached, the ongoing rangebound structure is likely to continue.

Pattern analysis also suggests that the consolidation phase remains intact. The Nifty is currently trading below a significant long-term moving average cluster, with the 100-week moving average placed at 24,414, the 200-DMA at 24,636, and the 50-week moving average at 24,691. The close proximity of these levels creates a strong resistance zone between 24,400 and 24,750, making it an important area to watch for any potential breakout. On the downside, the 23,900–24,000 region remains a key support zone. Additionally, the July 27 gap area between 23,892 and 23,824 could act as another support zone in case of further selling pressure.

On the immediate upside, resistance is seen in the 24,209– 24,244 range. This zone aligns with the 50-DMA and the downward-sloping trendline drawn from the August 3 swing high. A sustained breakout above this level could improve sentiment and push the index towards its 20-DMA, currently positioned near 24,312.

With the index still trading within a narrow range, aggressive directional bets may carry higher risk. Fresh positions should remain selective and focused on stock-specific opportunities rather than broad market exposure. Similarly, short positions should be avoided as long as the 23,950–24,000 support zone remains intact. For the coming fortnight, a measured approach with controlled position sizing and patience for a confirmed breakout or breakdown would be a prudent strategy.

STOCK RECOMMENDATIONS

OBEROI REALTY LTD ............................ BUY ......................... CMP ₹1,880.00
BSE Code : 533273
Target 1 .... ₹1,950 
Target 2 ..... ₹1,990 
Stoploss....₹1,820 (CLS)

Oberoi Realty Ltd. is one of India’s leading Real Estate development company, headquartered in Mumbai. It is focused on premium developments in the residential, office space, retail, hospitality and social infrastructure verticals. In the real estate space, Oberoi Realty is an established brand with an impeccable track record. Oberoi Realty has found support near the rising trendline drawn by connecting the June and August lows. This support zone also aligns with the rising 20-DMA, adding strength to the technical setup.

On Tuesday, the stock formed a bullish candle after holding this support area, indicating renewed buying interest near the trendline and moving-average support. The stock continues to trade above its 20-DMA, 50-DMA, 100-DMA and 200-DMA. More importantly, these moving averages remain aligned in a favourable sequence, which keeps the broader trend positive. The 14-period RSI on the weekly time frame is in bullish territory.

Going forward, a sustained move above the ₹1,882-1,885 zone could support further upside towards ₹1,950, followed by ₹1,990. On the downside, ₹1,820 can be kept as the stop-loss level.

VIMTA LABS LTD ................................. BUY ............................ CMP ₹661.35
BSE Code : 524394
Target 1 ...... ₹700 
Target 2 ..... ₹720 
Stoploss.....₹630 (CLS)

Vimta Labs Ltd., originally established in 1984 as a Partnership firm, is India’s most comprehensive contract research and testing organization, providing a wide range of services to pharmaceutical, biopharmaceutical, food, consumer goods, electronic, electrical, agrochemical, medical device, power, cement, oil & gas, ores & minerals, infrastructure and many other industries, government organisations as well as other industry participants.

Vimta Labs is approaching a potential breakout from its channel pattern. The stock recently found support near the 50-DMA, which also coincided with the lower boundary of the channel and the rising trendline. From there, it staged a sharp recovery accompanied by strong volumes, indicating improved participation and strengthening buying interest.

The stock is currently trading above its key moving averages, including the 20-DMA, 50-DMA, 100-DMA and 200-DMA, which keeps the broader technical structure favourable. The 14-period RSI has also moved above its previous swing high and entered bullish territory, adding strength to the recent price move.

Going forward, a sustained move above the ₹667-670 zone could confirm the breakout and open the way for ₹700-720 in the short to medium term. On the downside, ₹630 can be considered an important risk level on a closing basis.

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