Will Nifty Hit 25,000 This Month? Key Support and Resistance Levels

The Indian equity markets are at a critical juncture as investors weigh recent volatility against potential recovery signals. While the Nifty 50 shows signs of a technical bounce, reaching the psychological 25,000 mark this month remains a significant challenge.

Nifty Outlook: Targets and Crucial Support Zones

Despite a recent downsided gap following a 50-day streak of higher closes, the Nifty is showing signs of resilience. Geojit Investment’s chief market strategist, Anand James, notes that a "hammer candle" formation on Friday suggests an optimistic outlook for an upward move.

However, a dash toward the 25,000 milestone is not yet supported by clear technical signals. Instead, the market is expected to navigate a specific range in the coming week. Traders should look for immediate upside targets in the 24,300–24,600 zone. On the downside, caution is advised, with a strict support level to watch at 23,800. If this level is breached, further downside momentum could ensue.

IT Sector: Navigating 3-Year Lows

The Nifty IT index is currently facing significant headwinds, recently hitting 3-year lows. Heavyweight stocks have even touched 5-year lows, triggered by global sentiment shifts, including Accenture’s lower FY26 growth guidance.

Technically, the index is hovering near a vital horizontal support zone between 26,500 and 27,000. While the weekly RSI indicates that the index is in the "oversold" region—suggesting a potential bounce—the overall trend remains fragile. Friday's recovery appeared to be driven by short-covering rather than fresh institutional buying, meaning the sector may remain range-bound with a weak bias until a decisive reversal is confirmed.

Sectoral Winners: Defence and Power

While IT struggles, the Defence sector is exhibiting robust momentum. The defence index recently hit a fresh 52-week high, supported by a bullish MACD crossover and a multi-week range breakout. Analysts expect the index to potentially trend toward the 9,880–10,000 region, with major players like BEL and BDL attempting reversals.

In the power infrastructure space, Transformers & Rectifiers (India) showed significant strength, jumping 10% on Friday. Following an inverted Head and Shoulders pattern breakout, the stock is poised for a sustained move, though short-term consolidation may occur before the next leg up.

Top Stock Pick for the Week: Radico Khaitan

For traders looking for momentum, Radico Khaitan (LTPL 3769) stands out as a strong bullish candidate. The stock has resumed its uptrend after a brief consolidation, forming a sequence of higher highs and higher lows.

  • Target: 4,000 – 4,200
  • Stop-Loss: 3,480
  • Technical Driver: A bullish MACD crossover and a weekly RSI trending above 70 signal strong upward acceleration.

Key Takeaways

  • Nifty Levels: Watch for a recovery toward 24,300–24,600, but maintain a strict stop-loss near 23,800.
  • Sector Divergence: IT remains technically weak near 3-year lows, while the Defence sector shows strong trend acceleration toward 10,000.
  • Market Sentiment: While a hammer candle suggests optimism, the absence of clear momentum makes a 25,000 target unlikely in the immediate term.