The Indian benchmark indices extended their decline into another session on Thursday and closed in the red. Analysts expect Nifty's weakness to continue further.
"On intraday charts, it is forming a continuation of the correction, and on daily charts, a bearish candle has been formed, which is largely negative," stated Shrikant Chouhan, head of equity research at Kotak Securities.
Accordingly, the index will find immediate support between 24,080–24,050 zones, while on the upside, key resistance is placed between 24,300 and 24,330 levels, as per Sudeep Shah, head of technical and derivatives research at SBI Securities.
"Further downward movement may continue, potentially dragging the index to 23,900," Chouhan said.
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Bank Nifty
The Nifty Bank has witnessed a corrective phase in the last two days after a three-week rally, and analysts expect the negative bias to continue.
"The index formed a bearish candlestick pattern signalling consolidation with corrective bias for the second session in a row after recent strong up move," said Bajaj Broking Research.
Going ahead, the 55,900–55,800 zone is expected to act as crucial support, as a prior swing low is placed in this region, Shah from SBI Securities highlighted.
He added that any sustainable move below 55,800 may intensify weakness and result in further correction towards the 55,200 level. While on the upside, the 200-day EMA zone of 56,650–56,750 will act as an immediate resistance area.
Market Recap
Indian equity benchmarks closed lower for a second consecutive trading session. The BSE Sensex fell 852 points to end at 77,664, while the NSE Nifty 50 closed 0.84% lower at 24,173. Meanwhile, oil prices moved higher on Thursday due to a lack of progress in US-Iran talks.
Trent and Shriram Finance were the top losers, each falling more than 3.5%. Broader markets outperformed the benchmarks, though both ended in the red. The Nifty Midcap 150 fell nearly 0.5%, snapping a two-day gaining streak, led lower by Union Bank of India, while the Nifty Smallcap 250 dropped almost 0.6%, with IIFL Finance down over 10%.
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