- NSE Nifty 50 faces key support at 22,500-22,300 after six weeks of losses
- A drop below 22,300 may trigger exits from long positions, analysts warn
- Bank Nifty key level is 50,500, with risks below 50,000 signaling further decline
The NSE Nifty 50 faces key support at 22,500-22,300 after ending in the red for the sixth week in a row, according to analysts. A plunge below the 22,300-mark may lead to traders existing their long positions, they warned.
"As long as the market trades above these levels, a pullback formation is likely to continue. On the higher side, the bounce-back could extend till 22,900–23,000," said Amol Athawale, vice president of technical research, Kotak Securities.
Further upside may also continue, potentially lifting the market to 23,200, as per the analyst.
"Conversely, if the market falls below 22,300, the uptrend would become vulnerable. Below this level, traders may prefer to exit their long positions," Athawale said.
The Nifty Index, on Thursday, formed a counterattack bullish candle signaling strong pullback after gap-down opening, as per a note issued by Bajaj Broking Research.
"Volatility is likely to remain elevated in the near term, amid rising geopolitical tensions and higher crude oil prices, which continue to weigh on overall market sentiment," it said.
ALSO READ: Q4 Results Next Week: TCS Among A Dozen Companies To Kick Off Earnings Season From April 6
Bank Nifty
Bank Nifty, has formed a promising reversal pattern on daily and intraday charts, as per Athawale. In the near future, 50,500 would be the key level to watch, he said.
"Above this, the index could move up to 52,500–53,000. However, if it falls below 50,500, the sentiment could turn negative. Below this level, it could retest the levels of 50,000–49,700,"
Bank Nifty formed a bullish candlestick pattern as buying demand emerged from the key psychological level of 50,000 after a gap-down opening, Bajaj Broking said.
"For any meaningful pause in the ongoing downtrend, the index needs to establish a sustained pattern of higher highs and higher lows in the daily chart, along with a close above recent high of 54,150. On the downside weakness below the psychological 50,000 levels will signal extension of the decline towards 49,200-49,000 levels in the coming sessions," the brokerage said.
Market Recap
Indian equity benchmarks logged their sixth consecutive weekly losses amid a holiday-shortened week. The BSE Sensex slumped 13.8% and the NSE Nifty 50 tumbled 13% this week. The declines followed US President Donald Trump's warning of intensified military action against Iran in the coming weeks.
On Thursday, the markets staged a sharp recovery from the day's lows. The 30-stock index closed 0.3% higher at 73,319 after declining as much as 2.2% intraday. The 50-stock index rose 0.1% to 22,713. Intraday, it had fallen as much as 2.2%. Markets were shut on Friday for a holiday.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
