The key support levels for NSE Nifty 50 has slipped, as the Indian stock market resumed its downtrend on Thursday, a day after rallying due to the US-Iran truce.
Surging crude oil prices and cracks in the Middle East ceasefire agreement weighed on investors' sentiments, with bulls taking a breather.
The Nifty 50 now finds immediate support in the 23,630-23,600 zone, according to analyst Sudeep Shah, head of technical and derivatives research at SBI Securities.
"Going ahead, the 23,880–23,900 zone is likely to act as a key resistance for the index. A sustained move above 23,900 could extend the pullback rally towards 24,050, followed by 24,200 in the short term," Shah added.
The index formed a bearish candle with a lower high and a lower low signalling profit booking after a sharp upmove of 1,800 points in the last four sessions, according to Bajaj Broking Research.
"Volatility is expected to remain elevated in the near term, driven by uncertain global cues, firm crude oil prices, and ongoing geopolitical developments," the brokerage said.
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Bank Nifty
The Bank Nifty index finds immediate resistance in the 55,300–55,400 zone, as per Shah. For the downside, the 54,400–54,300 range is expected to provide crucial support for the index, the analyst said.
"Short-term support is revised higher towards 51,000–51,500 zone being the current week low and 80% retracement of the last four sessions pullback," Bajaj Broking said.
Market Recap
Indian equity benchmarks resumed declines on Thursday after one-day breather, tracking weak global cues on uncertainty around the ceasefire and reports of renewed Israeli strikes on Lebanon. The Nifty 50 ended 0.9% lower to settle near 23,780 and the BSE Sensex slumped 1.2% or over 900 points to close marginally above 76,630.
ALSO READ: Stock Market News Today Highlights: Nifty, Sensex Resume Declines As Ceasefire Uncertainty Returns
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