The Nifty's recovery continued to face selling pressure on Tuesday, with the index failing to sustain gains after being rejected from the 23,450-23,500 zone. The index closed below 23,400, keeping the near-term technical setup under pressure.
“On the technical front, the Nifty's rejection from the 23,450 to 23,500 region and close below 23,400 indicate that the recovery still lacks strength. Market breadth was insufficient to sustain the opening gains, while short-term momentum weakened during the session,” said Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.
According to Radhakrishnan, immediate support for the Nifty is placed at 23,300, followed by 23,200 and 23,000. On the upside, the 23,500-23,600 zone remains the key resistance area.
Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities, said the Nifty remains under pressure as it continues to trade below its key short-term and long-term moving averages. “Technically, Nifty remains under pressure as it continues to trade below its key short-term and long-term moving averages. In addition, the daily RSI remains positioned in the bearish zone, reflecting weak momentum,” Shah said.
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The technical setup suggests that the index needs to reclaim the 23,500-23,600 resistance zone to signal improvement in the near-term trend, while a break below immediate support levels could keep the corrective phase intact.
Bank Nifty Outlook
Bank Nifty ended lower on Tuesday, snapping its two-day winning streak and giving back most of the gains recorded over the previous two sessions. The index remained capped by the 56,700-56,800 resistance zone and formed a gradual sequence of lower highs and lower lows during the session. Buying interest emerged in the latter half around the 56,100-56,000 support region, but the recovery failed to sustain its highs. Bank Nifty eventually settled near 56,215.
“On the upside, immediate resistance is placed at 56,700-56,800, while a sustained move above 57,000 would be required to improve the broader near-term structure,” said Ponmudi R, CEO of Enrich Money. On the downside, immediate support for Bank Nifty is placed at 56,100-56,000. A failure to sustain this zone could extend the weakness towards the next support at 55,800-55,700, Ponmudi said.
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