The Nifty 50 ended lower on Tuesday after failing to hold gains near a key resistance zone, while the index recorded its narrowest trading range in the last seven sessions.
The benchmark index opened higher and moved closer to the 23,758-23,860 zone, which also coincides with the 50-day moving average. Selling pressure emerged near those levels, dragging the index more than 160 points lower from the day's high. The Nifty settled at 23,618, down 31.95 points, or 0.14%.
The session reflected continued caution in the market, with technical indicators showing weak momentum and resistance at higher levels. The index remained within the range of the bearish candle formed on May 12, while traders awaited a decisive breakout for clearer direction.
NR7 Candle Signals Lack Of Direction
The Nifty traded in a 195-point band during the session, marking its narrowest daily range in seven trading sessions and forming an NR7 candle pattern.
The candle formed with a small body and a long upper shadow, indicating selling pressure at higher levels. The index also closed near the day's low, suggesting sellers retained control through the session.
The benchmark continues to trade within the range of the sizeable bearish candle formed earlier this month. A decisive close above the 23,758-23,860 zone would be required for bulls to regain control of the trend.
If the index sustains above this resistance area, it could move towards the 20-day moving average near 23,974. Failure to cross the zone may keep the market under pressure.
Weak Trend Persists
On the hourly chart, the Nifty continues to trade below the moving average ribbon, while the MACD remains below the zero line, indicating weak short-term momentum.
A recovery in the previous session had raised expectations of a possible bullish shift. However, Tuesday's reversal from the day's high reduced those expectations.
For the last four trading sessions, the 8-day exponential moving average and the 50-day moving average have acted as resistance levels. During the same period, the index has remained about 0.5% below the 50-day moving average.
Broader indicators also continued to signal caution. The 14-period daily RSI remained below the 50 mark, while the 50-day and 200-day moving averages continued to trend lower.
The last six sessions of sideways movement have not produced a fresh directional signal. A sustained move above the 23,758-23,860 zone, backed by strong volumes, could improve sentiment.
Support Levels In Focus
Immediate support for the Nifty is placed near 23,550. A close below that level could strengthen bearish momentum.
For now, the index remains within a broader 23,262-23,860 range. A breakout on either side may determine the next directional move.
Stock Of The Day: Page Industries Breaks Above Key Levels
Page Industries ended its counter-trend consolidation phase and closed above its previous high, indicating renewed strength in the stock.
The move also pushed the stock above the 38.2% retracement level of its earlier 41% decline.
Volumes increased during the breakout, supporting the price move. The relative strength line also moved higher, indicating improved performance against the broader market.
The stock is trading above its short-term and long-term moving averages and has crossed the 200-day moving average resistance.
Momentum indicators also turned positive. Bollinger Bands expanded across time frames, indicating higher volatility. The stock is trading 11.28% above its 50-day moving average, while the moving average ribbon remains in an uptrend.
The MACD is close to a bullish crossover, the RSI has moved into bullish territory and the Stochastic RSI remains positive. The Elder Impulse System has also formed a series of bullish bars.
Page Industries is scheduled to announce its results on May 21, 2026. The company will also consider the declaration of a fourth interim dividend for equity shareholders for FY26.
The stock has closed above its earlier pivot level. Sustaining above the Rs 38,900-Rs 38,950 zone may support a move towards Rs 40,500-Rs 41,000, while Rs 37,700 remains the key stop-loss level.
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