The sharp decline in the NSE Nifty 50 index reflects continuation of the selling pressure on the index, according to analysts.
"Going ahead, to pause the current downtrend, the index needs to start forming higher highs and higher lows in the daily chart. Failure to do so will keep the bias down," stated Bajaj Broking Research on Thursday.
The Nifty has an immediate support base placed at 24,400-24,350 levels being the confluence of the recent lows and the key retracement area. The index holding above the same will lead to a consolidation in the range of 24,400-24,900, the brokerage added.
Failure to do so will signal acceleration of decline towards 24,000-23,800 levels being the confluence of the 52 weeks EMA and the previous major lows and the previous major breakout area, said Bajaj Broking Research.
The Bank Nifty has formed a sizable bear candle with a lower high and a lower low, signaling continuation of the corrective decline, as per analysts.
"The index has recently generated a breakdown below the last three weeks range (54,900-56,100) highlighting an extension of the decline," says Bajaj Broking. Going ahead, failure to move above 55,000 will keep the bias down and will open downside towards 53,500-53,000 levels in the coming sessions, the firm adds.
Key support is placed at 53,500-53000 levels being the confluence of the 200 days EMA and the low of May 2025, the brokerage further mentions.
Market Recap
The NSE Nifty 50 ended 211.15 points or 0.85% lower at 24,500.9 and the BSE Sensex closed 705.97 points or 0.87% down at 80,080.57.
Currency Update
The Indian rupee closed 5 paise stronger at 87.63 a dollar on Thursday.
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