The Nifty has failed to surpass the previous session's high for the 11th consecutive trading session, highlighting the prevailing weakness in the market structure. Technically, the index slipped below its 50-day and 100-day exponential moving averages (EMAs) on Tuesday and is now trading below all its key moving averages. The daily Relative Strength Index (RSI) stood at 44.67 and continued to trend lower, indicating that bearish momentum is gradually strengthening.
Indian equities are likely to remain under pressure in the near term as elevated crude oil prices, US-Iran tensions and weak global cues continue to weigh on market sentiment, according to Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services.
According to Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, the 24,030-24,000 zone is expected to act as a crucial support area for the Nifty. The rising trendline of the upward-sloping channel is positioned around these levels, making the zone important from a technical perspective.
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“A decisive breakdown below the 24,000 mark could accelerate selling pressure and trigger a deeper correction towards the 23,850 level,” Shah said.
On the upside, the 24,280-24,300 zone remains a crucial resistance area for the index. Shah said that as long as the Nifty continues to trade below 24,300, the overall market bias is likely to remain bearish. A sustained move above this resistance zone could provide some relief to the market structure, but until then, rallies may continue to face selling pressure.
Bank Nifty Outlook
Bank Nifty ended the session marginally lower after opening with a mild gap-down near the 57,331 mark. However, the index continued to hold above the crucial 57,200–57,100 support zone, keeping the broader recovery structure intact. The index is currently trading between its 20-day and 50-day exponential moving averages (EMAs), making this zone important for the near-term technical outlook. Sustaining above these support levels will be crucial to prevent further downside and preserve the ongoing recovery structure.
“A decisive break below 57,000 could weaken the broader technical setup and invite fresh selling pressure,” said Ponmudi R, CEO of Enrich Money. On the upside, the 57,500–57,600 zone remains the immediate resistance area. A sustained move above this range could strengthen buying momentum and push Bank Nifty towards the stronger 57,800–58,000 resistance zone.
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