The Nifty 50 ended Monday's session with modest gains after recovering from early losses, but analysts remain cautious, warning that a break below the 24,100 level could trigger another round of profit booking.
According to Ponmudi R, CEO of Enrich Money, the index continues to face strong resistance at higher levels. "Technically, the 24,300-24,400 zone continues to be the immediate resistance, with the upper end of this range aligning with the 200-day Exponential Moving Average (EMA)," he said.
Ponmudi added that the near-term trend remains fragile unless the index manages to decisively move above this resistance band.
"24,100 remains the immediate support level. A decisive breach below this mark may trigger fresh profit booking and expose the index to the 24,000 psychological support. Overall, the near-term technical outlook remains cautious, with a sustained move above the 24,300-24,400 resistance band required to confirm stronger bullish momentum and the continuation of the broader recovery," he said.
Analysts at Bajaj Broking said the market displayed resilience by recovering from intraday weakness, although the overall price action continued to indicate consolidation.
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The brokerage believes the ability of the index to defend the 24,100-24,200 support zone remains a positive sign in the near term. However, a sustained breakout above the 24,300-24,400 resistance band will be crucial for the market to regain bullish momentum.
Bank Nifty Outlook
Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, said Bank Nifty witnessed a volatile session but managed to defend key support levels, indicating that its short-term uptrend remains intact. He noted that the index formed a small-bodied bullish candle with wicks on both sides, reflecting intraday indecision among market participants.
"The immediate resistance for Bank Nifty is placed in the 58300-58400 zone," he added. Any sustainable move above this zone could result in Bank Nifty extending its pullback towards 58800, followed by 59200 in the short term.
Market Recap
Indian equity benchmarks declined on Monday following weak global cues amid escalating conflict between US and Iran. Nifty 50 ended 0.39% or 95.80 points lower at 24,238.50 and Sensex declined 0.57% or 442.93 points to close at 77,708.52.
Market sentiment weakened after the conflict in the Middle East intensified, lifting energy prices and reviving worries that higher fuel costs could complicate the global inflation outlook.
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