Indian equity benchmarks are likely to remain under pressure on Friday after the Nifty 50 extended its losing streak to four sessions, with selling emerging after an initial recovery attempt.
"Today's follow-through selling reinforces the near-term downtrend, with Nifty trading below all key moving averages, reflecting sustained selling pressure and weak sentiment," said Nandish Shah, Deputy Vice President, HDFC Securities.
According to Shah, the Nifty faces strong resistance in the 24,000-24,200 zone. The range has now emerged as a critical supply area and could restrict any near-term recovery in the index. On the downside, 23,800 remains an important level to watch. A decisive break below this support could open the way for the Nifty to move towards 23,600.
However, if the index manages to hold above 23,800, it could enter a phase of short-term consolidation, although the broader trend remains negative.
Market sentiment is also expected to remain sensitive to developments in global markets and macroeconomic factors.
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"Going forward, investor sentiment is expected to remain sensitive to crude oil price movements, developments in the Middle East, US bond yields, currency trends and foreign fund flows," said Sunny Agrawal, Head - Fundamental Research at SBI Securities.
Bank Nifty Outlook
The Bank Nifty ended higher on Thursday, offering some resilience compared with the broader benchmark. However, the banking index has continued to trade within a defined range over the past several sessions.
"The banking benchmark index Bank Nifty has ended on a positive note on Thursday. However, over the past 21 trading sessions, Bank Nifty has remained range-bound, oscillating within a band of approximately 1,254 points, reflecting the absence of a clear directional trend," said Sudeep Shah, Head - Technical and Derivatives Research at SBI Securities.
According to Shah, the current technical setup continues to indicate a consolidation phase, with key momentum indicators and oscillators pointing towards a sideways market structure.
For the upcoming session, the 57,900-58,000 zone is likely to act as immediate resistance for Bank Nifty. On the downside, the 56,900-56,800 zone remains an important support area.
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