The NSE Nifty 50 has found crucial support at 25,380-25,350 levels after the index witnessed volatility and ended in the green, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
Going ahead, for the Nifty, the 50-day extended moving average zone of 25,630-25,660 will act as an immediate hurdle for the index, according to Shah. "Any sustainable move above 25,660 will lead to a sharp upside rally up to the 25,800 level. On the downside, the zone of 25,380-25,350 will act as crucial support for the index," he added.
The index has formed a small bear candle with a small lower shadow, signalling continuation of the consolidation amid stock-specific action, as per Bajaj Broking's market research. "Nifty has immediate resistance placed at 25,650, going ahead only a move above the same will signal a pause in the current corrective trend," the brokerage said.
Volatility is likely to remain elevated amid uncertain global cues, it added.
Bank Nifty
The Bank Nifty finds crucial support in the 60,800–60,700 range, according to Shah.
"A sustained hold above this zone will maintain the positive undertone and prevent a deeper corrective move. On the upside, the region between 61,400 and 61,500 is expected to act as a significant resistance band, where supply pressure has previously capped upward momentum," Shah said.
Bank Nifty formed a high-wave candle with small real body and shadows in either direction, signalling consolidation amid stock-specific action, according to Bajaj Broking. "In the near-term index is likely to trade in the range of 60,000-61,750. A decisive move beyond this range could trigger fresh directional momentum," the brokerage said.
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Market Recap
India's benchmark equity indices swung between gains and losses through the session on Thursday as weakness in financial stocks outweighed continued recovery in information technology. A return of foreign funds on Wednesday gave an initial bump to markets in the morning, but momentum waned by noon. The Nifty gained and lost 0.3% intraday and the Sensex tossed 0.4% in both directions.
At the close, the Nifty 50 settled 14 points higher at 25,496.55 and the BSE Sensex at 82,248.61, down 27 points. HDFC Bank dragged the most on the blue-chip indices.
ALSO READ: Stock Market Today: Nifty, Sensex End Flat After Sharp Intraday Moves; HDFC Bank Top Drag
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