The benchmark equity indices closed the day with marginal gains but remained largely range-bound through the day. Due to the indecision on either side, analysts anticipate heightened volatility for Nifty.
"Technically, a Doji candle on daily charts and non-directional activity on intraday charts indicate indecisiveness between the bulls and the bears," said Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Therefore, 24,200 would act as a key resistance zone for traders, a breakthrough may open up further upside towards 24,300-24,350 levels. As of 10:30 p.m. the Gift Nifty futures hinted at a green start, as they traded nearly 0.3% higher at 24,104.
On the flipside, the index will continue to cling to the 24,000 as crucial support level, below which it may falter to 23,800-23,750 levels.
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"The current sideways range movement is expected to continue for the next 1-2 sessions," pointed out Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
Nifty Bank
The Nifty Bank index seemed to be mirroring the frontline indices and closed in the green after paring much of its intraday gains.
"On the daily chart, Bank Nifty has been consolidating within a 965-point range over the past several sessions. Today, it formed a small-bodied candle with a noticeable upper wick, highlighting the index's inability to sustain at higher levels and indicating the presence of selling pressure near resistance," said Sudeep Shah Head of Technical and Derivatives Research at SBI Securities.
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Accordingly, the immediate support for Bank Nifty is placed in the 57300-57200 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 56,800, followed by 56,400 in the short term.
Whereas, on the positive side, the immediate resistance for Bank Nifty lies between 58,200 and 58,300 levels.
Market Recap
The NSE Nifty 50 closed 0.09% or 22.80 points higher at 24,074.85, while the BSE Sensex rose 0.16% or 120.26 points to end at 77,175.20.
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