The Nifty 50 could see some consolidation after its recent correction, with technical indicators pointing to absorption of selling pressure and rejection of lower levels, according to market analysts. This comes after Nifty staged a modest rebound after Thursday's sharp selloff, rising 77 points to close at 23,140.
“The index has formed a High Wave candle following a strong bearish candle, indicating absorption of selling pressure and rejection of lower levels. The formation suggests near-term consolidation after the recent correction,” said Pabitro Mukherjee, Deputy Vice President-Research, Bajaj Broking.
However, the broader technical structure remains cautious, with key resistance levels likely to determine whether the recent correction stabilises or extends further. Nandish Shah, Deputy Vice President at HDFC Securities, said 23,300 and 23,600 remain important resistance zones for the index.
“On the upside, 23,300 and 23,600 remain strong resistance zones, with the latter coinciding with the breakdown level from the recent flag pattern,” Shah said. On the downside, immediate support is seen near 23,000, followed by the more critical 22,700 trendline support. According to Shah, the 22,700 level is derived from the swing lows recorded in June 2024, April 2025 and April 2026.
Shah added that the Nifty would need to sustain above 23,600 to change the near-term bias from “sell on rallies” to neutral.
Bank Nifty Outlook
Bank Nifty ended higher while continuing to trade within a broad consolidation range. The index sustained above 55,400 throughout the session and attempted to extend buying interest towards 55,800.
According to Ponmudi R, CEO of Enrich Money, 55,700–55,800 is likely to act as immediate resistance, while a sustained move above 56,000 would be required to stabilise the near-term structure. On the downside, 55,400 remains an important level to watch. A failure to sustain above this level could revive weakness and drag Bank Nifty towards the 55,000–54,800 support region.
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