In a decisive breakdown, the Indian equity benchmarks Nifty and Sensex declined on the final session of February, dragged by all counters barring IT. Analysts warn that the downtrend to continue in the coming sessions.
"A long bear candle has been formed on the daily chart that indicates a sharp breakdown of descending triangle type pattern. The crucial huge opening upside gap of 3rd Feb has almost been filled around 25100 (left with small margin). This is not a good sign," said Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities.
After breaching below earlier support levels, the new key support for Nifty has slipped to 24,700 levels in the near term, while on the upside, immediate resistance is placed at 25,400.
"Indian equities are likely to trade sideways with a cautious bias in the week ahead, against the backdrop of sustained global volatility," Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services pointed out.
Bajaj Broking Research echoed the view and said volatility is likely to remain elevated amid uncertain global cues.
Bank Nifty Outlook
The nifty bank index will remain range-bound in the upcoming sessions, according to analysts at Bajaj Broking.
"In the near-term index is likely to trade in the range of 60,000-61,750," the research firm added. Immediate support for the index is seen at 60,200-60,000 levels.
"Bank Nifty formed a bearish candle with a lower high and a lower low signaling profit booking at higher levels," Bajaj Broking said.
Volatility for the index will remain elevated due to uncertain global cues, analysts projected. .
Market Recap
India's benchmark Nifty and Sensex declined on the final session of February today, dragged by all counters barring IT. The Nifty 50 dipped below 25,200, breaching the support at 25,300. The Sensex tumbled over 1,000 points or 1.3%.
ICICI Bank, HDFC Bank and Bharti Airtel were the top drags on the Nifty. Broader market indices also fell sharply.
ALSO READ: Stock Market Crash: Nifty Key Support Slips To 24,600 Post MSCI Rejig
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.