The crucial support level for Nifty 50 slipped to around 25,400 levels, said analysts on Monday, after the frontline equity market index ended on a weak note.
"The index continues to trade with high volatility amid geopolitical tension. On the daily chart, Nifty has formed a bearish candle with a lower high and lower low, highlighting corrective bias," stated Bajaj Broking Research.
The immediate key support lies at 25,473, while on the upside 25,700 will act as immediate resistance, the research body said in its note.
Day traders are advised to engage in level-based trading amid heightened volatility of the index, according to Shrikant Chouhan, head equity research at Kotak Securities.
Nifty Bank
The Bank Nifty index may be moving towards consolidation, as per analysts, even as it continues to outperform with larger rallies. "Index has formed a bearish candle which remained contained inside previous session price range signaling consolidation amid stock specific action," stated Bajaj Broking Research.
The immediate support for the index lies at 59,300 levels while key short term support is placed at 58,700-59,000 levels. On the upside, 60,200-60,400 remains key resistance areas.
Market Recap
The Dalal Street closed in the red on Monday, with the Nifty settling 108.85 points or 0.42% lower at 25,585.50, whereas the Sensex closed 324.17 points or 0.39% lower at 83,246.18.
All sectoral indices closed in the red, except FMCG. Media, Oil & Gas and Realty stocks were the worst performers, declining in the range of 1.5–2%. In the broader market, the Mid-cap index fell 0.4%, while the Small-cap index dropped 1%.
Also Read: Rupee Breaches 91 Against US Dollar Again, Closes 14 Paise Lower At 90.92
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