The NSE Nifty 50, which reversed intraday gains to close below 25,900, has formed a third consecutive bearish candle, signalling extended profit-booking at higher levels, according to Bajaj Broking Research.
It expects the Nifty to consolidate in the 25,700–26,250 range, forming a base for the next up move. Crucial short-term support is identified in the 25,600–25,800 range.
The index has reached a crucial juncture, approaching the confluence of its 20-day exponential moving average and last week's low around 25,850, according to Rajesh Bhosale, equity technical analyst at Angel One.
This zone typically acts as a bullish reversal point in a strong uptrend. If the weakness extends further, the next significant support is placed at 25,700, marked by the rising trendline.
Shrikant Chouhan, head of equity research at Kotak Securities, views the 26,000–26,050 zone as a key resistance area. As long as the market trades below this, weak sentiment is likely to persist. Immediate downside support for bulls is seen at 25,800, below which the market could slip toward 25,675.
The Bank Nifty formed a small bearish candle, consolidating above its recent range breakout area of 57,300 to 58,500. Bajaj Broking maintains a positive bias, expecting the index to retain momentum and move towards the 59,800 level in the coming weeks. The 58,200 to 58,000 zone is expected to act as a crucial support area.
Market Recap
The NSE Nifty 50 closed 74.7 points or 0.29% lower at 25,884.8, while the BSE Sensex ended 313.7 points or 0.37% down at 84,587.01 on Tuesday.
The Nifty Realty and PSU Banks were the top performers, gaining over 1.4% each, while Nifty Media and Nifty IT were the main laggards, both slipping between 0.6% and 0.9%.
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