The Nifty ended Tuesday's monthly expiry session on a subdued note, with traders staying on the sidelines amid a lack of strong directional cues. The benchmark index traded in a narrow range through the day before closing marginally lower, while analysts said the market remains at a crucial technical juncture.
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the immediate hurdle for the index lies in the 24,120-24,150 zone, which also coincides with the 100-day exponential moving average (EMA).
"Any sustainable move above this zone could result in Nifty extending its pullback towards 24,300, followed by 24,450 in the short term," Shah said. On the downside, he identified the 23,850-23,820 zone as the immediate support area. A breach below this level could weaken the near-term technical structure.
Ponmudi R, CEO of Enrich Money, said the broader technical setup continues to warrant caution despite the recent pullback. "Overall, the near-term technical outlook remains cautious, with the market essentially at an inflection point. A sustained move above 24,000 would revive the recovery narrative, while a slip below 23,800 would reignite concerns of the broader corrective phase resuming," he said.
The analysts' views suggest that while the market has managed to stabilise after recent weakness, bulls will need to reclaim levels above 24,000 and decisively cross the 24,120-24,150 resistance zone to regain momentum.
Bank Nifty Outlook
Bank Nifty ended Thursday's session on a weak note after failing to sustain an early recovery, with profit booking in banking heavyweights during the monthly F&O expiry keeping the index under pressure.
According to Ponmudi R, CEO of Enrich Money, the immediate support for the index is placed in the 56,700-56,600 zone, which was successfully defended during Thursday's trade. "A break below this support could open the door towards the 56,400-56,300 zone," he said.
On the upside, the 57,000-57,100 range has emerged as the immediate resistance after the index gapped lower from those levels at the opening bell. If Bank Nifty manages to reclaim this zone, the next resistance is seen at 57,300-57,400, which analysts believe needs to be crossed to revive bullish momentum.
Ponmudi also highlighted that momentum indicators have weakened, with the daily Relative Strength Index (RSI) slipping below its signal line, indicating that the latest decline reflects genuine selling pressure rather than short-term market noise.
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