Indian Stock Market Weekly Outlook: Key Nifty and Bank Nifty Levels and Top Stock Picks

The Indian stock market started the week with strong buying interest, despite opportunities for profit-taking. According to Axis Direct, technical indicators suggest that many stocks will maintain their strength. Momentum indicators are supporting the current trend, and key support levels remain intact. The brokerage has identified high-conviction picks that could see an upside of up to 18% within 3 to 4 weeks.

Axis Direct's analysts noted that on the weekly chart, the Nifty 50 index formed a small bullish candle with a lower shadow, indicating buying interest at lower levels. The index reached a new all-time high of 26,310 intraday after 14 months but couldn't sustain it. A decisive close above this level could lead to further gains towards 26,500-26,700.

The analysts further explained that a sustained move above 26,350 might trigger buying towards 26,500-26,700. Conversely, a drop below 26,000 could lead to selling towards 25,850-25,600. They expect Nifty to trade within the 26,700-25,600 range with a mixed to positive bias for the week ahead. The weekly RSI remains above its reference line, reinforcing positive momentum.

In the case of Bank Nifty, the weekly chart showed a bullish candle with a higher high-low structure. It closed above the previous week's high, reinforcing a positive bias. Bank Nifty outperformed Nifty by reaching a new all-time high. The previous resistance at 58,600 has now become a key support zone due to the principle of polarity.

Axis Direct's analysts stated that sustaining above this level and continued buying could lead to further gains. A decisive move above 60,000 might trigger fresh buying towards 60,500-61,000. However, breaking below 59,450 may invite selling pressure towards 59,000-58,600. For the week ahead, Bank Nifty is expected to trade within the 58,600-61,000 range with a positive undertone.

Among the top stock picks for the week by Axis Direct is Welspun Living Ltd. The stock has shown a decisive breakout above its medium-term downward sloping trendline at 133 on the weekly chart in mid-November 2025. This was marked by a strong bullish candle indicating an end to its corrective phase and the start of a medium-term uptrend.

Stocks To Buy This Week

The stock experienced a brief throwback before rebounding sharply and successfully retesting the breakout zone. Rising volumes at the breakout highlight robust market participation and strong conviction. Momentum indicators align with this view as well; the weekly RSI has broken out above its downward sloping trendline validating price action strength.

Samvardhana Motherson International Ltd is another recommended pick. It is trending within a rising channel and advancing toward its upper band after taking support at its lower band. The stock broke above a strong multi-resistance zone near 114 on the weekly chart supported by rising volumes and a bullish candle.

This signals a positive bias and continuation of its medium-term uptrend. Momentum indicators support this strength; with weekly RSI rising above its reference line highlighting persistent momentum and strengthening bullish outlook.

Cummins India Ltd also features among Axis Direct's top picks for this week. On its weekly chart CUMMINSIND delivered a decisive breakout above strong multi-resistance zone near 4160 at October end in 2025 accompanied by bullish candle signaling positive bias continuation of medium-term uptrend.

The stock consolidated in narrow range between 4470-4160 taking brief pause after sharp rally but broke above range reaffirming uptrend continuation maintaining higher high-low structure trading well above rising trendline highlighting strong short-term bullish setup.

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