The Indian equity benchmarks were dragged down by the IT sector on Friday and ended the day in red after some consolidation. However, analysts expect the short-term trend to remain bullish.
"A small green candle was formed on the daily chart with minor lower shadow. Technically, this market action indicates minor downward correction from the highs," said Nagaraj Shetti, a senior technical research analyst at HDFC Securities.
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Analysts said that Friday's weakness in the benchmark is unlikely to damage the near-term uptrend status of the market.
"We are of the view that the short-term market outlook remains positive, and a strategy of buying on dips and selling on rallies would be ideal for traders," said Amol Athawale, VP Technical Research at Kotak Securities.
Accordingly, the immediate resistance for the index is placed at the 24,150 levels, while on the flipside, immediate support is placed at 23,800 levels.
Bank Nifty
The Nifty Bank witnessed profit booking after a sharp upmove and closed. Though, analysts expect the positive momentum to revive and sustain.
"Despite the decline, the index continues to trade above all its key moving averages, indicating that the broader trend remains firmly positive," said Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities.
Immediate support is placed at 57,500, followed by 57,000; while on the flipside 58,000 levels will be the key hurdle for the benchmark banking index.
Market Recap
Nifty 50 and Sensex rose about 1.8% this week, extending gains for a second straight week. The rally was supported by easing crude prices after a US-Iran agreement. On Friday, both indices snapped a five-day winning streak, with Nifty falling 0.64% to 24,013.10 and Sensex down 0.78% to 76,802.90.
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