The Indian stock market ended higher on Friday, but heightened volatility and sharp divergences between the benchmark indices during the Closing Auction Session (CAS) have kept traders cautious. Technical analyst Sudeep Shah expects the Nifty and the Sensex to remain range-bound, while highlighting key support and resistance levels and identifying six stocks that could outperform in the coming week.

The Closing Auction Session, introduced by Indian exchanges to reduce volatility at the end of the trading day, has itself been a source of sharp last-minute price swings in recent sessions, making it harder for traders to read closing levels as reliable signals. In such conditions, waiting for confirmation rather than acting on closing prints becomes important for short-term traders.

Among the questions addressed in the discussion:

1.) The Nifty and the Sensex saw sharp and extremely divergent moves this week amid the CAS. How should traders navigate these conditions?

2.) How are the charts looking for the Nifty and the Sensex for the coming week, and should consolidation be expected to continue?

3.) Where is a strong option position visible right now, and which Nifty strikes could act as immediate support or resistance zones going into the next expiry?

4.) What is the strategy for HDFC Bank after the lender hit a fresh 52-week low? And with sugar stocks performing well, what should investors do now?

5.) For traders looking beyond the index, which 4-5 stocks are looking good on the charts for the coming week?

Source: Economic Times Markets