Dalal Street Week Ahead: Protect gains, avoid fresh longs until key levels hold

The Indian stock market experienced a week of volatility, with the Nifty index closing at 25,444, down 222.60 points (-0.87%). The market demonstrated a negative bias, oscillating within a range of 565 points and reflecting a medium-term uptrend that is currently in a corrective phase. India VIX surged by 11.33% to 13.29, indicating rising market volatility. The Nifty has slipped below its 20-week moving average of 25,728, with key support levels identified between 24,900 and 24,950. Analysts suggest that a breach below this support could lead to a deeper retracement towards 24,350-24,400, while resistance is noted at 25,728 and 26,000. The weekly RSI sits at a neutral 50.17, lacking clear bullish or bearish signals. Given these indicators, market participants are advised to be cautious, focusing on protecting existing gains and avoiding new long positions until a decisive recovery above 25,800 occurs. A stock-specific approach is recommended in light of the current market dynamics.