- Nifty is expected to remain positive but may see consolidation or minor dip next week
- Immediate resistance for Nifty is at 24,200 and support is at 23,800 according to analysts
- A breakout above 24,200 could push Nifty towards 24,400 in the near term
The equity benchmarks have had a rather choppy ride in the last week, even as Nifty ended the previous session with gains. Going ahead, analysts expect the short-term trend to remain positive, though some consolidation might happen.
"The near-term trend of Nifty remains positive amidst broader range movement. Having failed to surpass the crucial overhead resistance of 24200, one may expect further consolidation or minor dip by next week," said Nagaraj Shetti, Senior Technical research analyst at HDFC Securities.
Accordingly, immediate resistance for the index is steady at 24,200, whereas on the flipside, immediate suppport is placed at 23,800. "A sustainable move above 24,200 could open more upside in the near term," Shetti underlined.
Technically, the market has formed a range-bound pattern, as per Amol Athawale, vice president of technical tesearch at Kotak Securities, who added that a successful breakout of 24,200 could push the market towards 24,400.
The Nifty seems to have sideways to bullish overall bias with support at 23,900-23,800 levels on the downside, as per Hitesh Tailor, research analyst at Choice Broking. "A breakdown below the 23,800 zone may invite renewed selling pressure and weaken the current technical structure."
Tailor recommended to traders to adopt a cautious stock-specific approach going into Monday's trade. "Considering the prevailing setup, traders are advised to maintain a stock-specific approach while following strict risk management amid continued market consolidation," the analyst said.
Nifty Bank
The Bank Nifty index is also expected to continue its upmove as the broader trend remains constructive after the index recently gave a consolidation breakout and continues to trade above its key short and long-term moving averages, as per Sudeep Shah, head of technical and derivatives research at SBI Securities.
Therefore, support zones are at 57,800 and 57,500. Above these levels, the rally could continue towards 58,700-59,000. Conversely, below 57,500, the uptrend would become vulnerable.
Market Recap
The benchmarks posted their third straight weekly gain, the longest such streak since the first week of December and in nearly seven months. The NSE Nifty 50 and the BSE Sensex gained 0.1 and 0.4% respectvely during the week.
On Thursday, Nifty 50 ended 34.35 points, or 0.14%, higher at 24,056, while the Sensex gained 109.25 points, or 0.14%, to close at 77,100.47.
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