Nifty Weekly Outlook: Silver Near Resistance, Gold in Overbought Zone, Nifty 50 & Bank Nifty Trend Weak – Auto Ancillary Sector in Focus

In this week’s Nifty Weekly Market Analysis, we are not only reviewing Nifty 50 and Bank Nifty, but also looking at gold, silver, and key sectors that show strong potential.

Silver Outlook

Silver continues to look extremely bullish on charts. Earlier, when silver crossed the ₹1,20,000 levels, we had discussed its next target towards ₹1,50,000. Currently, silver is trading around ₹1,42,000, just a step away from the milestone.

Looking back, silver had touched similar levels in 2009, around ₹5,000 (adjusted charts). Based on historical patterns, there is still a 10% upside possible, potentially taking silver towards ₹1,56,000 levels.
However, the risk-reward ratio is no longer favorable since prices are near resistance. Investors should be cautious as a retracement cannot be ruled out.

Gold Outlook

Gold, on the other hand, has already crossed its key resistance levels earlier in 2025 and is now in uncharted territory. On monthly charts, gold looks overbought, which raises caution. A similar pattern was observed in 2020, when gold corrected after touching such levels.
This is not a buy or sell recommendation, but a technical observation that gold is at risk of correction from these highs.

Nifty 50 & Sensex Analysis

The Nifty 50 started showing weakness around 25,300 levels and recently touched 24,650. Historically, Nifty has bounced back around 24,500 levels, making this an important support zone.

Support Zone: 24,500 – 24,650

Risk-Reward: Not favorable for fresh bearish trades

Trend: Still weak, with no strong bullish reversal signs yet

Unless Nifty breaks above the falling trendline resistance, any major upside should not be expected. A minor pullback, however, is possible.

The Sensex also shows similar patterns, with 83,000 as a crucial support zone. The recent fall validates earlier bearish expectations, though fresh shorts carry higher risk now.

Bank Nifty Outlook

Bank Nifty looks weaker compared to Nifty 50. Major support is seen at 54,000 – 53,800 levels, implying a possible downside of 300–400 points from current levels.

Sector in Focus – Auto Ancillary

Among sectors, auto ancillary stocks continue to look promising. With automobile sales rising, auto component manufacturers are likely to benefit.

Key companies in focus:

Automotive Stampings & Assemblies Ltd – engaged in stamping, fabrication, and welding of auto components.

Bharat Gears Ltd – a leading supplier of gears, transmission shafts, and powertrain components.

Minda Corporation Ltd – a major auto component manufacturer with pan-India and global presence.

Fundamentals show that while some of these companies carry debt, promoter holdings remain strong. Institutional interest (FIIs & DIIs) has also increased in select companies, indicating long-term confidence.

Conclusion

Silver: Near resistance, limited upside, risk of retracement.

Gold: Overbought, correction risk high.

Nifty 50/Sensex: Weak trend but key support zones may trigger pullback.

Bank Nifty: Still vulnerable, support around 54,000.

Auto Ancillary Sector: Structural demand growth; worth studying for long-term opportunities.

Disclaimer: This analysis is for educational purposes only. Past performance is not a guarantee of future returns. Please consult your financial advisor before making investment decisions.