The Indian equity benchmark indices ended the day marginally lower as profit booking emerged at higher levels. However, in the short term, analysts expect the momentum to be positive.
"We are of the view that the short-term market texture is positive, but a fresh uptrend rally is possible only after the dismissal of 24,000," said Shrikant Chouhan, head of equity research at Kotak Securities.
Therefore, the 23,980–24,000 zone has emerged as an immediate resistance zone, as per Dhupesh Dhameja, Derivatives Research Analyst, SAMCO Securities.
"The broader hurdle remains near the key 0.50 Fibonacci retracement level of 24,264," he added. On the flipside, the immediate support for Nifty is placed in the 23720-23700 zone, said , Head of technical and derivatives research at SBI Securities, Sudeep Shah.
"On the daily chart, Nifty formed a small-bodied candle with a noticeable upper wick, reflecting profit booking at higher levels," Shah added.
Bank Nifty
The Bank Nifty mirrors the Nifty on the technical chart, where profit booking can be seen at higher levels.
ALSO READ: PB Fintech Shares In Focus: Founders Plan Rs 654 Crore Block Deal
"On the daily chart, Bank Nifty formed a small-bodied bearish candle with a noticeable upper wick, indicating weakness at higher levels and an inability to sustain gains," pointed Shah.
Accordingly, resistance for Bank Nifty is placed in the 55,200-55,300 zone, while immediate support for Bank Nifty is placed in the 54,400-54,300 zone.
Market Recap
Benchmark indices ended with minor losses after a volatile session. The NSE Nifty 50 closed down 0.03% at 23,907.15, falling 6.55 points after a volatile session. The BSE Sensex declined 0.19% to 75,867.80, down 141.90 points.
Broader markets outperformed with the Nifty MidCap 150 rising over 0.4% and the Nifty SmallCap 250 up over 0.5%. Adani Total Gas and Cummins led gains in the midcap index, while Jayaprakash Power Ventures and Zee Entertainment rose sharply in the smallcap space.
Sectoral indices were mixed, with Nifty Energy gaining nearly 2%, while Financial Services declined over 0.5%, with BSE and HDFC Bank among the key laggards.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.