The NSE Nifty 50 ended lower for the second straight session on Monday amid profit-booking pressure at elevated levels, according to analysts.
The benchmark, which closed 0.49% lower at 25,202.35, formed a high-wave candle with a lower high and lower low, Bajaj Broking said. "We expect the index to extend the last two sessions of consolidation in the range of 25,500–25,000 zone."
Immediate resistance for the benchmark lies at 25,500–25,600. "A sustained breakout above this supply zone could trigger further upside in the coming weeks," the research firm added.
On the downside, key support is placed at 25,100–24,900 levels, which coincides with the confluence of the 20- and 50-day exponential moving average. Bajaj Broking holds that dips should be used as a buying opportunity.
"We maintain a constructive view and believe the ongoing corrective pullback presents a tactical buying opportunity within the broader uptrend," says the brokerage.
Bank Nifty Outlook
"The Bank Nifty has formed a bear candle with a lower high and lower low signaling profit booking for the second session in a row at the 61.8% retracement of the entire decline (57,628-53,561) placed around 56,000 levels," said Bajaj Broking.
"This price action underscores profit-booking pressure at elevated levels following a sharp 2,300-point rally over the past three weeks, which has propelled the daily stochastic oscillator into overbought territory."
On the downside, immediate support is placed at 54,700 levels being the confluence of the last week low and 20 days EMA, while key support is placed at 54,000 levels being the key retracement of the entire decline, as per the firm. On the upside, the index faces initial resistance at the 56,000 zone.
"A sustained breakout above this supply zone could trigger a fresh leg of momentum, potentially opening the gates for a move towards the 57,000 marks in the coming weeks," the research firm added.
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