The Nifty is likely to remain in a consolidation phase on Tuesday, with technical indicators pointing to a lack of clear directional momentum. The index opened with a downside gap on Monday and slipped to an intraday low of 24,226 before buying interest emerged in the second half of the session.
The recovery helped the benchmark climb to an intraday high of 24,360. However, the index could not sustain the gains and settled at 24,287 in the closing auction session, down 0.32%. On the daily chart, Nifty formed a small-bodied bearish candle with a lower shadow, reflecting buying interest at lower levels.
"Technically, Nifty continues to hover between its 20-day, 50-day, and 100-day EMAs, all of which are currently moving sideways. The daily RSI is positioned near the 50 mark and remains in a declining trajectory. This setup reflects a lack of decisive momentum and suggests that neither bulls nor bears currently hold a clear advantage," said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
For day traders, the immediate resistance is placed at 24,400. A sustained move above this level could strengthen the recovery and push the index towards the 24,500-24,620 zone said Shrikant Chouhan, Head Equity Research, Kotak Securities.
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"On the flip side, a break below 24,220 could accelerate selling pressure. Below this, the market could retest the levels of 24,100-24,050," Chouhan said.
With Nifty trading around its key moving averages and momentum indicators remaining subdued, traders are likely to watch the 24,220-24,400 range for a decisive breakout or breakdown before taking a stronger directional view.
Bank Nifty Outlook
Bank Nifty ended on a resilient note despite a weak start, with strong buying interest at lower levels helping the index recover sharply during the session. The index opened near 57,418 and came under heavy selling pressure in early trade, slipping below the 57,200 mark and touching an intraday low of 57,120. However, buyers stepped in at lower levels, triggering a steady recovery that lifted Bank Nifty towards 57,800 during the session.
"On the upside, 57,800-58,000 mark is the immediate resistance and a sustained move above this zone would open the path toward 58,200 and beyond," said Ponmudi R, CEO of Enrich Money.
On the downside, the 57,200-57,100 zone has emerged as the immediate support area, with the day's low of 57,120 reinforcing the importance of this range. A sustained break below 57,100 could weaken the recovery and reopen the downside towards the 57,000-56,800 zone.
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