- Nifty 50 broke a four-month consolidation and gained 0.84% to close at 24,774
- Immediate resistance for Nifty lies between 24,920 and 24,950, says SBI Securities
- Momentum indicators like RSI and MACD support a bullish outlook for Nifty
The Nifty 50 is likely to maintain its positive momentum in the near term after breaking out of a four-month consolidation range, with analysts advising investors to use any dips as buying opportunities. The benchmark index opened with a gap-up on Monday and traded in a narrow range for most of the session before witnessing a sharp late surge following the introduction of the Closing Auction Session (CAS). The Nifty ended the day at 24,774, gaining 0.84%.
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the immediate resistance for the index is placed in the 24,920-24,950 zone. "Any sustainable move above this zone could result in Nifty extending its up move towards 25,100, followed by 25,250 in the short term. On the downside, the immediate support for Nifty is placed in the 24,630-24,600 zone," Shah said.
Shah added that momentum indicators continue to support the bullish view. The Relative Strength Index (RSI) remains on an upward trajectory, while the Moving Average Convergence Divergence (MACD) has crossed above its signal line, indicating strengthening upward momentum.
The breakout is particularly significant as the Nifty has moved above a nearly four-month consolidation range of around 1,532 points on the daily chart, suggesting the potential for further gains. Analysts at Bajaj Broking also maintained a constructive outlook on the benchmark index.
"We believe the bias remains positive and dips, if any, in the coming sessions should be used as a buying opportunity," the brokerage said.
Bank Nifty Outlook
Bank Nifty opened with a gap up and extended its gains to an intraday high of 57,853. However, profit booking at higher levels trimmed some of the gains.
"Going ahead, the immediate resistance for Bank Nifty is placed in the 58700-58800 zone. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 59200, followed by 59500 in the short term," said Shah. He also added that immediate support for Bank Nifty is placed in the 57800-57700 zone.
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