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Why 24,350 Is the Line for Nifty Bulls This Week
Nifty holds above 24,350 at midday; a weekly close above that level would set up a test of 24,600, Kotak Securities' Shrikant Chouhan says. With IT stocks surging 6.9% and breadth strong, here's what confirms the breakout—and what breaks it.
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Nifty held above 24,350 through the first half of Friday's session, up 182 points at 24,357.80 as of 12:55 pm IST. The Sensex added 539 points to 78,041. The rally was broad-based. Of 4,178 stocks traded, 2,217 advanced against 1,721 declines. 164 stocks hit 52-week highs, 47 hit lows. Circuit data showed 144 stocks in upper circuit and 153 in lower circuit.
IT and pharma led the charge. HCL Technologies surged 6.9% to ₹1,152.80 on volumes of nearly 90 lakh shares. Tech Mahindra climbed 3.2%. Dr. Reddy's rose 3%. Max Healthcare added 2.7%. Bajaj Finserv gained 2.6%, bucking the banking weakness.
Banks were the drag. State Bank of India fell 1.1% on the highest traded value among losers at ₹64,017 lakh. Axis Bank and Kotak Mahindra Bank each lost about 0.6%. The selling in rate-sensitive financials persisted from the open, continuing a rotation pattern.
The technical focus is the 24,300–24,350 zone, flagged as resistance in pre-market notes. Kotak Securities' Shrikant Chouhan said a weekly close above 24,350 would increase the probability of crossing 24,600 soon. The Nifty was trading within that band at midday.
Confirming factors for the bullish read:
A close above 24,350 on Friday, ideally above 24,375. Sustained breadth strength, with the advance-decline ratio holding above 1.5. Continued leadership from IT and pharma, which have been the engine today. A breakout above 24,600 in the coming sessions would validate the resistance break.
Invalidating factors:
A close below 24,200. That would leave the resistance level untested and suggest the midday rally was a false breakout. Further deterioration in banking stocks, with SBI breaking below ₹1,030. A drop in the advance-decline line below 1.3, indicating that breadth is narrowing.
The session's close at 3:30 pm IST will be the first test. Chouhan's 24,600 target hangs on whether the index can defend 24,350 into the week's end.