The Indian equity benchmarks ended on a subdued note on Friday, down by 0.2%, indicating a lack of strong directionality, as per analysts.
"The index formed a small bearish candle with a minor lower shadow, reflecting a lack of strong directional momentum," said Sudeep Shah, Head ofTechnical and Derivatives Research at SBI Securities.
He added that Nifty has remained largely range-bound in the past few sessions, reflecting a cautious undertone, a trend which will likely carry on.
Accordingly, the immediate support for the index lies in the 23,230–23,200 zone going forward, whereas on the other hand the 23,530–23,550 zone will act as an immediate hurdle. Chances are, if the index breaches below the support zone, further downside to the 23,050 level will open up.
However, as long as the index sustains above 23,250, a buy-on-dips strategy remains favourable, underlined Analysts at SAMCO Securities.
"A decisive move above 23,500 could attract fresh buying interest and trigger a recovery toward 23,700–23,850," they added.
Nifty Bank
Analsysts say that the next directional move, if any, for the bank nifty index is going to be a significant one after a highly volatile session which eventually ended in being the fourth day of gains.
"On the daily chart, it formed a high-wave candle with shadows on both sides, reflecting indecision at current levels," said Shah from SBI securities.
Going ahead, the 54,100–54,000 zone will act as immediate support for the index. On the upside, the 55,000–55,100 zone will act as a crucial hurdle.
Market Recap
Indian equity benchmarks extended declines for the second consecutive week. The benchmark indices erased weekly gains this morning after the Reserve Bank of India raised its inflation forecast and lower its GDP projections for the ongoing fiscal. Both the NSE Nifty 50 and the BSE Sensex fell 0.7% each this week.
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