The Nifty is likely to remain volatile and range-bound in the near term as the index continues to face resistance around the 24,300-24,400 zone. Market participation, however, has been improving, with banking stocks regaining leadership and mid-cap indices scaling fresh record highs.
“Nifty's inability to sustain gains above the 24,300-24,400 resistance zone indicates that supply continues to emerge at higher levels, even as the quality of market participation improves, with banking stocks reasserting leadership and mid-cap indices climbing to fresh record highs,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
Nandish Shah, Deputy Vice President at HDFC Securities, said the market remains choppy, with the Nifty yet to establish a clear directional trend.
“A decisive breakout above 24,400 could signal renewed strength, while a sustained break below 24,100 may increase the risk of further weakness. Until then, the index is likely to stay volatile and range bound,” Shah said.
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Recent market analysis has similarly highlighted 24,200-24,150 as immediate support, with 24,000 emerging as a stronger support level.
Bank Nifty View
Bank Nifty witnessed buying interest during the initial minutes of trade but failed to sustain the upward momentum as profit booking emerged at higher levels. As a result, the banking benchmark formed a bullish candle with an upper shadow on the daily chart, reflecting selling pressure at higher levels.
“On a positional basis, Bank Nifty continues to trade within a range, and a decisive move on either side will provide the next directional cue,” said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
For the next session, 57,300-57,200 will act as immediate support, while 58,100-58,200 will be the immediate hurdle. “A sustained move above 58,200 could trigger a fresh rally towards 58,600 levels,” Shah said.
Bank Nifty's recent technical setup has also pointed towards a range-bound structure, with the index needing to convincingly clear the 58,000 area for stronger upside momentum.
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