- NSE Nifty 50 found support at 22,650-22,600 after ending a two-day rally
- A move below support may extend Nifty weakness to 22,400 and then 22,200
- Nifty faces strong resistance near 23,150-23,200 amid volatility from oil prices
The NSE Nifty 50 has found immediate support in the 22,650-22,600 zone after the stock market continued its down trajectory on Friday, ending its two day rally, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
Any sustainable move below the support zone could result in Nifty extending its weakness towards 22,400, followed by 22,200 in the short term, the analyst said. "On the upside, the zone of 23,150–23,200 zone is likely to act as a strong resistance," Shah stated.
The Nifty 50 index has formed a sizable bearish candle with a lower high and a lower low, signalling resumption of downtrend after two sessions of pullback, according to Bajaj Broking's market research.
"The index in the coming weeks is likely to consolidate in the range of 22,450–23,850 amid high volatility on account of the rising crude oil prices and escalating geo-political tension," the brokerage said. "On the downside a breach below previous week's low of 22,471 may trigger further downside towards 22,100 and 21,800 levels," it added.
Bank Nifty
The Bank Nifty index finds immediate support in the 51,800–51,700 zone, according to Shah. "Any sustainable move below this zone could result in Bank Nifty extending its weakness towards 51,400, followed by 51,000 in the short term," the analyst said.
The index Index formed a sizable bearish candle with a lower high and a lower low, signalling resumption of downtrend after two sessions of pullback, according to Bajaj Broking. On the upside, the zone of 52,700–52,800 zone is likely to act as an immediate resistance as per Shah.
Market Recap
India's stock market resumed its decline on Friday, snapping a two-day positive run, tracking global cues as the Iran war and higher oil prices weighed on sentiment. The Nifty 50 and BSE Sensex ended 2.1% and 2.3% lower. The 50-stock index lost over Rs 3.65 lakh crore in market capitalisation.
The blue-chip indices logged their fifth consecutive weekly loss, the longest stretch since August, shedding 1.3%. The conflict in the Gulf, high energy prices and a weaker rupee have taken a toll on Dalal Street.
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