- NSE Nifty 50 found critical support at 24,700 after three sessions of losses
- A drop below 24,900 could lead to a downturn towards 24,700 in coming sessions
- Resistance levels for Nifty are 25,050 to 25,250, including the 50-day moving average
The NSE Nifty 50 has found critical support at 24,700 levels after three straight sessions of ending in the red, according to Osho Krishan, chief manager of technical and derivative research at Angel One.
"If the index experiences any further decline below the 24,900 zone (50-double exponential moving average), it could potentially lead to a significant downturn, dragging it toward the critical support level of 24,700 in the upcoming trading sessions," he said.
On the upside, the 20-DEMA, situated around 25,200-25,250, presents a formidable resistance barrier, according to Krishan.
The Nifty sees 25,050 and 25,100 as crucial resistance zones for short-term traders, which is also the 50-day simple moving average, according to Amol Athawale, vice president technical research at Kotak Securities.
"Key level to track remains at 24,900. A sustained breach below the same could prolong the corrective phase towards 24,600–24,400. Conversely, holding above may trigger a technical rebound towards last week's high," analysts from Bajaj Broking Research said.
"However, only a breakout past last week's high would confirm a pause in ongoing correction and open upside potential towards 25,500–25,600 in the near term," it added.
The Bank Nifty finds key short-term term support is placed at 56,000–55,500 region, representing a confluence of the 50-day extended moving average and the key retracement level, according to Bajaj Broking Research.
Market Recap
India's benchmark equity indices logged a third consecutive session of losses on Friday, pulled down by banks and other financial stocks. The NSE Nifty 50 closed 143.05 points or 0.57% down at 24,968.4, while BSE Sensex ended 501.51 points or 0.61% lower at 81,757.73.
Currency Update
The Indian rupee ended Friday's session on a weaker note, slipping eight paise to settle at 86.16 against the US dollar.
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