The NSE Nifty 50 has found critical support at 25,850-25,700 levels after the index snapped a two-session gaining streak and slipped below the 26,000 mark, according to Rajesh Bhosale, equity technical analyst at Angel One.
"Currently, the index is positioned at a crucial support zone: the trendline joining higher bottoms (24,580 & 25,318) aligns with the last three weeks’ low around 25,850, making it a pivotal level to track," Bhosale said.
"A breakdown below this area could push prices towards 25,700, the golden retracement zone and vicinity of the 50 EMA on the daily chart," he added.
The index formed a sizable bear candle with a lower high and a lower low, signalling lack of follow through to Friday’s strong pullback as the index closed below the 26,000 levels, according to Bajaj Broking Research.
The index printed a strong bullish candle, marked by a higher high and higher low, indicating a consolidation phase with an upward tilt, according to Bajaj Broking.
"Key support lies at 25,900–25,700, which aligns with the bullish gap from November 12, the 50-day EMA, and the lower band of the rising channel," Bajaj Broking said.
Bank Nifty
The Bank Nifty sees support at 59,000-58,800 levels and resistance at 59,500-59,800 levels, according to Bhosale.
"Bank Nifty has formed a bearish candlestick pattern with a long lower shadow, signaling lack of follow through to previous session strong pullback post RBI monetary policy outcome," Bajaj Broking Research stated.
The brokerage stated that a follow through strength above the last week high (60,114) will open further upside towards 60,400 and then towards 61,000 levels in the coming weeks.
"Key short-term support is placed at 58,200-58,600 levels being the confluence of the recent low and the major breakout area. Holding above the support area will keep the short-term bias positive," Bajaj Broking Research said.
Market Recap
The NSE Nifty 50 declined 225.9 points or 0.86% to settle at 25,960.55. Intraday, it dropped 294.2 points or 1.12% to a low of 25,892.25.
All sectoral indices closed in red throughout the course of the day's trade.
RECOMMENDED FOR YOU
Trade Setup For Dec. 8: Nifty Finds Support At 25,900–25,700 After RBI Rate Cut
Trade Setup For Dec 4: Nifty Support Slips To 25,900 As Bulls Lose Steam
Trade Setup For Dec 3: Nifty Support Stays At 26,000 After Third Day Of Decline — Key Levels To Watch
Trade Setup For Nov. 11: Nifty Finds Support At 25,200–25,400
POPULAR