- Indian indices likely to remain in consolidation without breaching key resistance levels
- Nifty faces resistance at 23,350 and 23,425; failure may keep it in 23,100–23,400 range
- Bank Nifty shows profit booking near 55,500–55,600 but trend remains broadly constructive
Indian benchmark indices are likely to remain in a consolidation phase unless key resistance levels are decisively breached, according to market analysts. Technical indicators suggest that while broader trends remain intact, near-term momentum has weakened after US President Donald Trump signalled further military action against Iran.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, echoed a cautious stance. He believes 23,350 will act as an immediate resistance level for the bulls.
"As long as the index trades below 23,350, weak sentiment is likely to continue. On the downside, the market could retest 23,100–23,050. A move above 23,350 could trigger a bounce towards 23,425, while further upside may lift the index to 23,500," Chouhan said.
According to Bajaj Broking, Nifty faces a crucial hurdle at 23,425. A sustained move above this level could trigger a breakout from the ongoing consolidation range and pave the way for an advance towards 23,550 and subsequently 23,830, which coincides with the confluence of the 20-day exponential moving average (EMA) and the upper band of the prevailing channel.
However, the brokerage cautioned that failure to cross the immediate resistance zone could keep the benchmark index trapped within a broad 23,100–23,400 range.
Meanwhile, Hariprasad K, Research Analyst and Founder of Livelong Wealth, highlighted weakening momentum indicators. The daily RSI is hovering around 38, reflecting a bearish undertone. However, with the indicator nearing oversold territory, intermittent short-covering rallies and temporary recoveries cannot be ruled out.
Bank Nifty Outlook
Bank Nifty also witnessed profit booking after a strong rally in recent sessions. The index formed a negative candle on the daily chart after facing resistance near the 55,500–55,600 zone.
Despite the pullback, Bajaj Broking noted that the index continues to trade above its 20-day EMA, indicating that the broader trend remains constructive. The formation of a long upper-shadow Doji candle suggests exhaustion in bullish momentum, though the recent decline appears to be more of a profit-booking exercise than a trend reversal.
The brokerage said a decisive move above 55,500–55,600 would confirm renewed buying momentum and could push the index towards 56,000 and 56,500 levels. Immediate support is seen in the 54,000–53,800 region.
Market Recap
Benchmark indices gave up gains through the session after hitting intraday highs earlier in the day. Nifty 50 fell 0.12% to close at 23,214.95, after rising to 23,425.35 intraday. Sensex ended 0.09% higher at 73,983.18, down over 600 points from its day's high of 74,613.01.
ALSO READ: 'Going To Hit Iran Hard Today': Trump Threatens Imminent Strike As Talks Falter
Index contribution data showed banking stocks supporting the Nifty, while IT and select large-cap names weighed on the index. HDFC Bank contributed 35.32 points and ICICI Bank added 31.22 points, followed by Axis Bank at 14.89. L&T and Hindustan Unilever also supported gains with contributions of 9.13 and 7.83 points, respectively. Infosys was the top drag with a 28.02-point impact, while Reliance Industries, Bharti Airtel and Hindalco also weighed on the index.
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