- Nifty ended lower on Friday, trading below key moving averages indicating continued weakness
- Immediate Nifty support is between 23,500-23,450 and resistance at 23,800-23,850
- Indian equities face caution due to high crude prices, weak rupee, and volatile foreign flows
The Indian benchmark equity indices ended in the red on Friday even after opening on a bullish note. Analysts expect Nifty's weakness to continue as it is expected to trade below its key moving averages.
"On the daily chart, Nifty formed a small-bodied candle with a noticeable upper wick, indicating selling pressure at higher levels. Despite the pullback over the last three sessions, the index continues to trade below its key moving averages, reflecting underlying weakness," said Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities said.
Acccordingly, immediate support for the index is placed between the 23,500-23,450 zone, while on the flipside, the immediate resistance for Nifty is placed in the 23,800-23,850 zone.
"Indian equities are expected to trade in a broader range in the near term, as elevated crude oil prices, persistent rupee weakness, and continued volatility in foreign flows keep overall market sentiment cautious," stated Siddhartha Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services.
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Nifty Bank
Even as Bank Nifty shrugged off its initial weakness and moved higher during the session, the index faced stiff resistance around the 54,320–54,325 zone on two occasions and the index ended 0.77% lower at 53,710.
"Going ahead, the immediate support for Bank Nifty is placed in the 53300-53200 zone. Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 52800, followed by 52400 in the short term. On the upside, the immediate resistance for the Index is placed in the 54100-54200 zone," stated Sudeep Shah.
Market Recap
Indian equity benchmarks resumed weekly declines, with both indices falling nearly 3% over the week. On Friday, the Nifty 50 slipped 46.10 points, or 0.19%, to close at 23,643.50, while the Sensex fell 160.73 points, or 0.21%, to 75,237.99.
In the currency market, The rupee slipped to a record low against the U.S. dollar in early trade. The local currency weakened past the 96 mark and depreciated as much as 96.03 against the dollar.
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