- Nifty shows cautious technical structure after sharp correction last week
- Index faces resistance at 24,150–24,300 and support near 23,300 and 23,200
- Nifty remains above 200-Week EMA but below 50-Week EMA, indicating caution
Nifty enters the Sept. 15 trading session with its broader technical structure remaining cautious after a sharp corrective move during the previous week. While the index saw some buying interest emerge from lower levels on the final trading session, it continues to face sustained supply at higher levels.
According to Hitesh Tailor, Research Analyst at Choice Broking, Nifty's weekly price action reflects a meaningful loss of momentum after the index faced resistance in the 24,150–24,300 zone. “The weekly price action reflects a sharp corrective move, with Nifty facing sustained supply from higher levels and breaking below the near-term consolidation zone. However, the recovery from 23,231 on the final session indicates some buying interest emerging near lower levels,” Tailor said.
He noted that the index continues to hold above its 200-Week EMA, while remaining below the 50-Week EMA, keeping the broader market structure cautious.
Also Read | Layoffs Are Rising In Tech, But These Skills Are Helping People Unlock Better Pay
From a technical perspective, Nifty's weekly chart shows weakening momentum after the recent correction. Tailor said the index would need to stage a sustained recovery above the immediate resistance zone to improve the technical setup.
ALSO READ: Infosys, Wipro ADRs, Cognizant, Accenture Surge Up To 5% As IT Defies Wall Street Slump
A decisive move above the higher resistance levels could help strengthen sentiment, while failure to reclaim these zones may keep the index vulnerable to further bouts of selling. On the other hand, immediate support is placed at 23,300, followed by 23,200, while 23,500–23,600 remains the key recovery hurdle.
Bank Nifty
Bank Nifty ended higher after staging a strong recovery from the 55,700 mark, although the broader technical setup remains cautious as the index continues to trade below key short-term moving averages. According to Ponmudi R, CEO of Enrich Money, the 56,700–56,800 zone is likely to act as the immediate resistance for the index.
On the downside, the 56,100–56,000 region remains the immediate support zone for Bank Nifty. Ponmudi said a failure to sustain this support area could trigger further selling pressure and drag the index towards the 55,700–55,600 levels.
Momentum indicators continue to signal caution. Bank Nifty remains below its key short-term moving averages, indicating that the index has yet to regain a stronger bullish structure.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
