F&O Talk | Nifty ends at 8 weeks of high, bulls watch 25,500-25,700 levels: Sudeep Shah

Investors continued to encourage the recently announced GST reforms, while upgrades for growth meter expectations and domestic demand were further improved. In addition, optimism about the resumption of India -Handers, in combination with softer American inflation prints that strengthened the expectations of accelerating the FED rate, further support the rally.

Indian shares ended the week in a strong tone, supported by favorable domestic developments and a supporting global background. The tone remained positive throughout the week, helped by rotation participation of heavyweights in the sectors. Consequently, both benchmark -Indices closed close to the high of the week, with the handy location at 25.114.00 and the Sesex at 81,904.70, with the profit of more than 1.5% each registered.

With this, analyst Sudeep ShahVice -president and head of technical and derivatives research SBI effectsInteraction with ET markets with regard to the prospects for Nifty and Bank Nifty, as well as an index strategy for the coming week. The following are the edited fragments from his chat:

Nifty ended the 2nd week in the Green and was closed above 25,000. What does the index look like now?

For the second consecutive trade session, the Benchmark -Index Nifty has completed the week in a positive tone, which strengthens the strength of the current recovery. In the past two weeks, the index has witnessed a gradual withdrawal of nearly 700 points, with the highlight being the highest weekly closure in the past eight weeks – a sign of improving sentiment and technical resilience.

Currently, the Nifty is about to give a breakout of the symmetrical triangular pattern on a daily scale, which often precedes a sharp directional movement. The index is traded above both the advancing averages in the short and long term, which have begun to go up-an encouraging signal for bulls.

Momentum indicators also become constructive. The daily RSI has climbed over 60 marks for the first time since July 2025, which points to strengthening the momentum. In the meantime, the MACD stays in buying mode and the rising MacD histogram suggests a pick -up in the top momentum. The market width has improved considerably in recent sessions. Among Nifty voters, 82% of the shares act above their 20-day EMA, while 76% above their 50-day EMA is alleviating from broad participation in the rally.

With technical indicators that coordinate positively and improve internal strength, Nifty seems well positioned for a potential outbreak. Speaking of crucial levels, the zone of 25150-25200 will act as an immediate obstacle for the index. Every sustainable movement above the level of 25200 will lead to a sharp upward rally to the level of 25500, followed by 25700 in the short term. While the disadvantage is, the zone of 24950-24900 will probably offer a pillow in the event of an immediate decline.

What is the view of couch Nifty now, which also gave a green end to the weekly graph?

The Banking Benchmark Index has continued its withdrawal rally for the second consecutive week, which indicates a recovery attempt in the short term after recent decreases. From the recent low point of 53561, the index has returned by more than 1200 points in the past two weeks, which reflects a modest improvement in sentiment.

Despite this recovery, however, the index remains under the EMA of 50 days and 100 days one sign that the wider trend still has no confirmation. These advancing averages continue to act as overhead resistance, and a decisive closure above them will be crucial for a persistent upward trend. At the Momentumfront, the daily RSI is still in a sideways zone, but this is gradually higher, which indicates a slow force in strength. An outbreak above the 60 -point can also validate bullish momentum.

Continue, the zone of 55100-55200 will act as an immediate obstacle for the index. Every sustainable movement above the 55200 level will lead to the expansion of withdrawal rally to the level of 56,000 in the short term. While it is disadvantage, the zone of 54400-54300 will act as crucial support for the index.

With the return of Infosys on the table, how do you expect the stock to perform?

The return price is set at 1800 versus 1525 market price, which is a premium of 18% compared to the current market price. Given that Infosys fell by 19% on an annual basis (YTD), the recent development can act as a short boost for the shares.

Technically, the stock has formed a double bottom pattern from Adam & Adam on a daily scale. It is currently floating around the neckline of the double bottom pattern. It acts above its EMA levels of 20 and 50 days. While the daily RSI quotes at 5A 6 level and it is on the rising process.

Continue, the neckline zone of 1540-1550 will be the crucial obstacle for stock. Every sustainable movement above the 1550 level will lead to a sharp upward rally in stock. While the disadvantage is, the zone of 1490-1480 will probably offer a pillow in the event of an immediate decline.

How do you read the IT sector in view of the background?

The handy It has recently formed an Adam & Adam double bottom pattern on the daily graph – a bullish reversal formation. The index is currently floating around the neckline resistance of this pattern. It acts above its 20-day and 50-day EMA, both of which are starting to be higher. A sustainable movement above the 36500 level can activate a sharp upward rally in the index, making it one to pay close attention.

Which other sectors do you look at now?

Nifty India Defense: It has given a downward sloping trendline -breakout on the daily graph, which shifts a trend. The index has also risen above the most important advanced averages, who are now starting to hell up – a bullish board. In particular, the daily RSI has crossed the 60 marking for the first time since June 2025, indicating the reinforcement of the momentum. With these signals that coordinate, the index will probably continue its northern journey in the upcoming sessions.

Nifty CPSE and Nifty PSE: they have also shown strength, with both indices giving a downward trendline outbreak on the daily scale. This outbreak suggests a possible trend shift and we believe that these indices are well positioned to perform better in the short term, supported by improving the width and sentiment in the PSU room.

Apart from this, various other sectoral indices show signs of continuous outperformance. Nifty Metal, Pharma, Healthcare, Automobile and Consumer Durables will probably retain their positive momentum in the short term, supported by strong price action and favorable technical indicators.

And the shares to pay attention?

A number of shares show promising technical setups and can be on the radar of the traders in the short term. Based on graph patterns, momentum indicators and advancing average alignments, show the following Bullish properties shares:

Defense and PSU segment:

Mazdock, Hal, Bel, Beml, GRSE, Titagarh – This defense and PSU names have demonstrated a strong price action, with various outbreaks of consolidation zones and trade over important advancing averages.

Pharma & Healthcare:

Dr. Reddy’s, Glenmark, Klier – Pharma – Supplies wins on grip, supported by rising RSI and improving the trend structure.

Financial data:

Bajfinance, Bajajfinsv – Both shares have given a consolidation -breakout on a daily scale, supported by strengthening the momentum.

Metals and raw materials:

Nationalum, Hindalco, Hindzinc, Hindcopper metal Stocks witness renewed buying interest, with different names that act above their short-term EMA’s and bullish continuation patterns.

These shares are technically well placed and can offer trade options in the short term, especially if a broader market sentiment remains supportive.

((Indemnification: Recommendations, suggestions, views and opinions of the experts are their own. These do not represent the views of economic times)