- Nifty formed an indecisive candlestick, indicating balanced buying and selling forces
- Immediate Nifty support is at 24,450–24,400, with resistance at 24,650–24,700 zones
- Nifty trades above key EMAs; a breakout above 200-day SMA may set the next trend, analysts say
The Nifty witnessed a volatile and range-bound session on Dalal Street on Monday, closing at 24,583, up 13 points. The index came under pressure in the latter half of the session, declining nearly 75 points from the day's high as selling emerged at higher levels.
On the daily chart, the Nifty formed a small-bodied, indecisive candlestick, signalling a balance between buying and selling forces after the recent upmove. The index continues to trade at elevated levels, although the absence of strong directional momentum suggests that consolidation could persist in the near term.
According to Hitesh Tailor, Technical Research Analyst at Choice Broking, the immediate support for the Nifty is placed in the 24,450–24,400 zone, while the broader support area is seen around 24,300–24,250. "The market structure remains positive as long as the index sustains above its immediate support zones, although traders may continue to witness volatility and stock-specific movements," Tailor said.
On the upside, the 24,650–24,700 zone is expected to act as immediate resistance, followed by the crucial 24,800–25,000 region. A sustained breakout above 24,700 could strengthen the bullish momentum and open the door for further gains. On the other hand, a break below 24,400 could trigger short-term profit booking and put the broader support zones under pressure.
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HSL Prime Research maintained a positive view on the primary trend, noting that the Nifty continues to trade above its 20-day, 50-day, 100-day and 200-day DEMAs. The research house said a decisive breakout above the 200-day SMA or a breakdown below the 200-day EMA is likely to determine the index's next directional move.
Nifty Bank Outlook
The Bank Nifty has remained in a consolidation phase over the last four trading sessions, oscillating within a narrow range of 621 points and forming a series of indecisive candlesticks, reflecting a lack of clear directional conviction. Additionally, momentum indicators and oscillators are largely neutral, suggesting a continuation of range-bound trading in the near term.
"From a technical standpoint, the 58,000-58,100 zone is likely to act as an immediate hurdle for the index. A decisive breakout above 58,100 would signal a resumption of the prevailing uptrend and could open the doors for a fresh rally towards 58600, followed by 59,200 over the short term," said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
Shah added that the 50-day EMA is currently placed near the 57100-57000 region and is expected to provide strong support. As long as the index sustains above this support band, the broader bullish structure is likely to remain intact despite the ongoing consolidation.
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