- Nifty 50 is showing a bullish crossover of 50-day and 100-day moving averages
- Index fell up to 0.9% intraday, slipping below both moving averages at 25,727 and 25,736
- Support is placed at 25,500–25,450; breach may lead to decline toward 25,300–25,200 levels
The Nifty 50 generated a bullish crossover between its 50-day and 100-day moving averages on Monday, even as the index fell as much as 0.9% to 25,482 and slipped below both averages in intraday trade.
The 50-day moving average stands at 25,727, while the 100-day moving average is at 25,736, according to data available on Bloomberg. The shorter-term average has moved above the longer-term average on the daily chart, a signal that traders often read as an improvement in the medium-term trend.
That came as the Indian equity benchmarks declined on Tuesday and snapped a two-day gaining streak. The Sensex fell as much as 1%, or more than 800 points, to 82,481. Broader markets underperformed, with the NSE Nifty 500 falling more than the benchmarks, led by declines in Eternal and Infosys.
The bullish crossover has emerged at a time when the index trades around the 25,500 level and below both the 50-day and 100-day moving averages. Analysts generally look for price strength above these averages to confirm such signals.
“Nifty 50 opened with a gap-down near 25,600, slipping below its 20-, 50-, and 100-day EMAs, reflecting short-term weakness in sentiment,” Ponmudi R, CEO of Enrich Money, said. He placed immediate support at 25,500–25,450 and warned that “a decisive breach of this zone could extend the downside toward 25,300–25,200, which coincides with the 200-day EMA and represents a crucial structural base.”
On the upside, he said resistance is seen at 25,650–25,750. “Momentum indicators remain subdued, with RSI near 48 and trending lower, signalling mild bearish pressure,” Ponmudi said, adding that volatility may persist given expiry-day dynamics.
Market participants are likely to watch whether the Nifty sustains above the 25,700–25,740 zone in the coming sessions to validate the crossover signal. Until then, the index remains under near-term pressure despite the shift in the moving average structure.
Catch all the live updates on stock markets here.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
