F&O Talk: Nifty consolidation to continue says Sudeep Shah; gives Tata Motors, Lenskart, Honasa strategy
Nifty remains range-bound amid falling volatility, with 24,200–24,150 as key support and 24,550–24,600 as resistance. Options data shows strong Put writing, suggesting limited downside. Analysts prefer PSU banks, while defence, auto and chemicals remain technically strong.
The stock market closed in the red on Friday, with both the Sensex and Nifty recording slight losses despite oil prices stabilising around $87 per barrel. Analyst Sudeep Shah, Head of Technical & Derivatives Research at SBI Securities, discussed the outlook for the Nifty Bank, options data, and an index strategy for the upcoming week.
Shah noted that Nifty has been trading in a narrow range of 500 points since the beginning of August, with its daily trading range contracting significantly. The index's daily ATR is at its lowest level since the first week of January 2026, highlighting the sharp decline in volatility. Shah also mentioned that the loss of momentum and fading trend strength suggest that the next breakout could be pivotal in shaping the market's near-term direction, with the 50-day EMA zone of 24,200–24,150 acting as an important support for the index.
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