Nifty: A breakdown below 24,350 may intensify selling in Nifty: Analysts – News Air Insight

Nifty 50 faces a volatile week ahead as technical indicators flash weakness and multiple analysts flag critical support levels that could dictate the index’s near-term trajectory. While consumption-driven sectors like auto, FMCG, and consumer durables are showing relative strength, caution is advised in banks, IT, PSUs, and realty.

RAJESH PALVIYA
HEAD – TECHNICAL AND DERIVATIVES RESEARCH, AXIS SECURITIES

Where is Nifty headed this week?
On weekly chart, the index has formed a long bearish candle with a lower high-low compared to the previous week, indicating weakness at current levels. The index is approaching a horizontal support of 24,350. A breakdown below this level could open downside to 24,071 (200-day simple moving average). For a positive trend reversal, the index must close above 24,702 (20-day SMA). Chart structure indicates that a sustained move above 24,500 may attract buying interest, driving the index towards 24,700–25,000, while a breakdown below 24,350 could intensify selling pressure, dragging it towards 24,150–23,900. For the week, we expect Nifty to trade in the 24,800–24,000 range with a negative bias. Trading strategy for the week
For the Nifty options expiring on September 2, a Put Spread is recommended for a moderately bearish market outlook. The trader buys one lot of 24,500 strike put options at a premium of Rs 135–145, and simultaneously sells one lot of 24,250 strike put options at a premium of Rs 25–30. The break-even point is at 24,390, with a maximum potential loss of Rs 8,250 and a maximum profit of Rs 10,500. Stocks like Hero MotoCorp, Britannia, Eternal, Dalmia Bharat, and UPL can be considered on the long side of trade.

ROHAN SHAH
TECHNICAL ANALYST, ASIT C. MEHTA INVESTMENTWhere is Nifty headed this week?
Nifty remains vulnerable near the 24,500–24,300 support zone. This region is critical as it represents the neckline of a Head & Shoulders structure. A decisive close below it would confirm a pattern breakdown, exposing the index to 23,800–23,500. Conversely, any relief rally is likely to face resistance around 24,800–25,200.

Trading strategy for the week
Sectors showing relative strength with bullish chart formations and expected to outperform include autos, FMCG, and consumer durables. On the other hand, sectors such as realty, central public sector enterprises (CPSEs), and banks continue to display weakness. Select stocks like Voltas, Dabur India, Colgate Palmolive, Indus Towers, Indraprastha Gas, and Havells India are exhibiting strength.

RUPAK DE
SENIOR TECHNICAL ANALYST, LKP SECURITIES

Where is Nifty headed this week?
Nifty is below the 100-day exponential moving average (EMA) on the daily chart. In the weekly timeframe, the index closed below the 21-day EMA for the second time in the last four weeks, reflecting rising pessimism. The immediate support zone is placed at 24,150– 24,170, which also aligns with the 38.2% Fibonacci retracement of the prior rally from the April 2025 low to the June 2025 high. A decisive breakdown below 24,150 could open the door to further downside. Conversely, if the index sustains above this support, a meaningful recovery cannot be ruled out.

Trading strategy for the week
Within the auto space, two-wheelers such as Eicher Motors, TVS Motor, and Hero MotoCorp are showing strong momentum. Among carmakers, Maruti looks favorable, while Tata Motors is best avoided. Additionally, stocks like NAVA, CG Power and Industrial Solutions, and HBL Engineering can be kept on the radar. Caution is advised for IT, PSU, and banking stocks.