Indian equities extended their losing streak to a fifth consecutive session, with the Nifty breaching the 24,900 level as persistent profit-taking, continuous foreign fund withdrawals, and uncertainty around US–India trade negotiations fuelled concerns of a potential Q2 GDP slowdown, according to analysts.
The benchmark Nifty 50, which closed 0.66% lower at 24,890.85, formed a bearish candle with a lower high and lower low in the daily chart, Bajaj Broking said. "A notable technical development is that the index is undergoing a mean-reverting pullback over the past six sessions, which has dragged the Nifty towards its 50-day EMA. However, only a formation of higher high and higher low in the daily chart will signal a pause in the current corrective trend."
The Nifty's immediate support area is seen at 24,900 being the presence of 50-days EMA and key retracement area. "A sustained breach below the support area of 24,900 will signal extension of the decline towards 24,700 levels," the research firm added.
On the upside, resistance is seen at 25,000, as per Rupak De, Senior Technical Analyst at LKP Securities. "It appears that the bulls are stepping back, giving bears more control over the market."
Bank Nifty Outlook
"The Bank Nifty formed a bearish candle with a lower high and lower low on the daily chart, indicating extension of the corrective decline," said Bajaj Broking.
"The index appears to be unwinding its overbought conditions following a sharp 2,300-point rally over the past three weeks."
On the downside, immediate support is seen at 54,700–54,900, which aligns with last week’s low and the 20-day EMA. A more significant support level is placed near 54,000, representing a key retracement level of the recent rally.
"On the upside, the index faces initial resistance near the 56,000 mark. A decisive breakout above this level could pave the way for a fresh uptrend, potentially targeting the 57,000 level in the coming weeks," the research firm added.
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