Nifty Outlook Bullish, Buy on Dips: Analysts

Midcap and Smallcap gained 0.8 pc and 1 pc, indicating strong broader market buying

- AGENCIES

The Indian equity benchmarks paused their recent rally last week, with the Nifty ending just above the psychological 25,000 mark. However, the momentum indicators favour the bullish setup next week, according to analysts.

While the headline indices showed signs of mild pressure, the broader markets outperformed significantly. The BSE Midcap index gained 0.8 per cent, and the Smallcap index added 1 per cent, indicating continued buying interest beyond the large-cap space.

"This suggests that investors are becoming more confident in the market's breadth, often a bullish sign for the overall trend," according to Kailash Rajwadkar of Choice Broking.

From a technical standpoint, the Nifty has recently broken out of a Rounding Bottom pattern on the weekly chart, supported by strong volumes—a bullish signal.