The NSE Nifty 50 finds immediate support at 23,000-22,900 zone after breaking its three-day losing streak, according to Bajaj Broking's market research.
"Immediate support is seen around the current week's low in the 23,000–22,900 zone. A breakdown below this level could trigger further downside, potentially dragging the index toward the 22,700–22,400 range," the brokerage said.
"This region coincides with a previous gap area and the 78.6% Fibonacci retracement of the earlier major uptrend," it added.
Going ahead, the 23,170–23,200 zone is expected to act as an immediate resistance for the index, according to Sudeep Shah, head of technical and derivatives research at SBI Securities. "As long as Nifty continues to trade below the 23,200 mark, the downside pressure is likely to persist. In such a scenario, the index may drift towards 22,850, followed by the 22,700 level in the short term," Shah said.
Bank Nifty
The Bank Nifty finds support at 53,240 levels, according to Bajaj Broking. "A sustained move below Thursday's low of 53,240 could trigger further downside, with potential targets at 52,500 and 51,800 in the coming sessions," the brokerage said.
Looking ahead, the 53,900–54,000 zone is expected to act as an immediate resistance area for the index according to Shah. "As long as Bank Nifty trades below the 54,000 level, the downward bias is likely to continue. In the near term, the index may test the 53,400 level, and a breach below this could open the doors for a further decline towards the 52,800 mark" the analyst said.
Market Recap
Indian equity benchmarks halted a three-day losing streak on weak global cues, surging oil prices and selloff in HDFC Bank. The NSE Nifty 50 fell 2.9% to below 23,100 and the BSE Sensex fell 3.3% to near 74,200. Intraday, the 30-stock index fell as much as 3.6% or 2,753 points to 73,950 and the 50-share index fell as much as 3.6% to 22,930.
The declines in the benchmark indices were led by HDFC Bank, which slided in today's trade after its part-time chair Atanu Chakraborty resigned, citing concerns over practices that were not aligned with his personal values and ethics.
Meanwhile, oil prices rose further as strikes on energy infrastructure in the Middle East raised supply concerns. Brent crude May futures climbed 5% to above $116.
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