After rising for four consecutive sessions, the Nifty 50 ended lower on Tuesday as investors booked profits near a key resistance zone. The index fell 31.65 points, or 0.13%, to close below the 24,400 mark after failing to hold gains above 24,500.
The decline came after the index tested the 24,482-24,530 resistance band, which again capped the rally. Although the four-day winning streak ended, the broader short-term trend remains intact as the index continues to post higher highs and higher lows. The recent weakness points to a period of consolidation rather than a reversal, provided key support levels hold.
Volatility remained elevated on the weekly derivatives expiry, with the Nifty moving in a 182-point intraday range, its widest in the past five trading sessions. The index opened higher and briefly crossed the 24,500 mark before selling pressure emerged. From the day's high, it declined nearly 130 points before settling lower.
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Resistance Continues To Cap Gains
The earlier market view had noted that the Nifty has typically managed only four to five consecutive positive closes this year. After completing a four-session winning streak on Monday, the market showed signs of pausing near resistance during Tuesday's trade.
The day's price action formed a red-bodied candle with a small upper shadow on the daily chart near the resistance zone, indicating profit booking at higher levels. Despite the decline, the prevailing higher high and higher low pattern remains unchanged, suggesting that the broader short-term trend has not weakened materially.
Broader Market Shows Signs of Weakness
Market breadth remained weak even though the benchmark index posted only a modest decline. Broader market indices also came under pressure, indicating that selling extended beyond frontline stocks. This points to the possibility of a counter-trend consolidation over the next few sessions before the market attempts another upward move.
Support Levels Stay In Focus
The first support for the Nifty is seen at 24,280. Below that, the opening gap created on July 3 between 24,198 and 24,252 remains an important support zone. As long as the index holds above this gap area, the current decline is likely to be viewed as a counter-trend consolidation rather than the start of a broader reversal. In that scenario, buying on declines could remain the preferred strategy.
On the upside, the 24,482-24,530 zone is expected to remain a key hurdle. A sustained move above this range could pave the way for an advance towards 24,600, the swing high recorded on April 21, 2026.
Momentum Indicators Remain Positive
Momentum indicators continue to support the broader trend. The 14-period daily Relative Strength Index remains above 60, while the Moving Average Convergence Divergence indicator has not signalled any meaningful loss of momentum.
As long as the July 3 opening gap between 24,198 and 24,252 remains intact, the current weakness is likely to be treated as a counter-trend consolidation within the broader positive market structure.
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