The NSE Nifty 50's support moved to 24,400 levels after the Indian benchmark indices closed lower for a seventh straight session on Monday, according to analysts.
"On the daily chart, Nifty has formed a significant bearish candle with an upper shadow, indicating that bulls failed to sustain the earlier rebound. This price action reflects selling pressure at higher levels and suggests a continuation of near-term weakness in the sessions ahead," Bajaj Broking Research said in a note.
The Nifty will find immediate support between 24,530 and 24,400 levels, which may act as potential entry points for long trades, according to Amruta Shinde, technical and derivative analyst, Choice Broking.
On the upper end, a sustained move above 24,800 could pave way for a rally towards 25,000, the analyst said.
Notably, both the frontline equity market indices closed 0.08% lower on Monday, with Nifty settling at 24,634.9 and Sensex ending at 80,364.94.
"Investors are awaiting the RBI policy announcement this week, with the central bank widely expected to maintain status quo on rates," Bajaj Broking Research said.
Bank Nifty
According to Amruta Shinde, "Bank Nifty displayed indecision, forming a Doji after a volatile session. A decisive break below the key support of 54,200 could trigger further downside toward 54,000 and 53,790."
However, if the support levels hold, it could provide fresh buying opportunities. On the upside, resistance lies at 54,800–55,000 zone, she added.
"Currently, Bank Nifty is trading below its 21- and 50-day EMAs, signaling that short-term momentum remains weak and the trend favours the downside until these moving averages are convincingly breached," according to Bajaj Broking Research.
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