- Nifty bulls hold firm at 24,900 support but need breakout above 25,250 for control
- Breakout above 25,250 could push Nifty towards 25,500–25,600 levels in near term
- Failure to hold 24,900 may cause correction towards 24,600 level
The market currently reflects a tug-of-war between bulls and bears, with the focus primarily on earnings for further direction, according to Ajit Mishra, senior vice president at Religare Broking Ltd.
Mishra said that while bulls held firm at the 24,900 mark on Nifty, a clear breakout above 25,250 is crucial for them to reclaim full control. "Failing this, we may witness a resumption of profit booking," he said.
"Given the prevailing volatility driven by earnings announcements, participants should prioritise risk management over aggressive positioning," Mishra added.
A decisive breakout above 25,250 would be required to end the recent corrective phase and to unlock further upside towards the 25,500–25,600 levels in the near term, according to Bajaj Broking Research.
"On the downside, a breakdown below 24,900 would indicate continued weakness and may lead to an extended correction towards the 24,600 mark," the brokerage firm said.
The 24,900 level will act as sacrosanct support level, a make-or-break zone for the bulls, according to Rajesh Bhosale, equity technical analyst at Angel One.
As long as this level is maintained, Bhosale emphasised that the broader outlook remains constructive, and traders can continue with a positive bias.
"On the upside, the 25,200–25,250 zone, which coincides with the 20-Day Double Exponential Moving Average and last week's swing high will be a key resistance," he added.
Market Recap
The benchmark equity indices snapped three sessions of losses on Monday as shares of ICICI Bank Ltd. and HDFC Bank Ltd. led the gains.
The NSE Nifty 50 ended 122.3 points or 0.49% higher at 25,090.7, while the BSE Sensex gained 442.61 points or 0.54% to close at 82,200.34.
Currency Update
The Indian rupee closed 14 paise weaker at 86.29 against the US dollar on Monday, marking its lowest closing level since June 23. The decline follows Friday's close of 86.15 and reflects growing pressure from global and domestic factors.
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