The NSE Nifty 50 finds support at 23,550–23,500 levels after the equity indices closed lower for a second straight session on Friday according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
"Going ahead, 23,550–23,500 will act as a key support zone for the index. A sustained move below 23,500 could trigger further downside towards the 23,350 level," Shah said.
On the upside, 23,800–23,850 remains an immediate resistance zone, as per Shah, while a decisive breakout above 23,850 may lead to pullback rally towards the 23,970–24,000 zone.
The Nifty index formed a high wave candle with a lower high and a lower low, signalling continuation of the downward bias, according to Bajaj Broking's market research. Bias remains down and the index is likely to extend the current decline towards the 23,200 levels in the coming sessions, as per the brokerage.
"Market volatility is also expected to remain elevated due to uncertain global cues, rising crude oil prices, and escalating geopolitical tensions," Bajaj Broking said.
Bank Nifty
The Bank Nifty index has the 54,600–54,500 zone as a crucial support for the index, as per Shah.
"A sustained break below 54,500 could extend the decline towards the 53,900 level. On the upside, the 55,500–55,600 zone will remain a key resistance area, likely to cap any pullback rallies," the analyst said.
The index has formed a high wave candle with a small real body and shadows in either direction signaling continuation of the corrective decline according to Bajaj Broking.
Market Recap
India's benchmark equity indices closed lower for a second consecutive session on Thursday, tracking bearish sentiments across the world. Auto, FMCG and consumption were the top sectoral losers on the NSE.
The rupee hit an all-time low amid a surge in oil prices, raising worries over India's current account.
ALSO READ: Stock Market Today: Nifty, Sensex Shed 1% Amid Oil Shock; Auto, FMCG Top Sectoral Losers
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