The NSE Nifty 50’s immediate support level stands at 23,500, with further support near 23,300-23,200, while key resistance is positioned around 23,800, followed by stronger resistance at 23,850, according to analysts.
“Over the past week, the Nifty-50 Index and Sensex remained flat to marginally negative, with the mid-cap index slipping by about 0.45% and the small-cap index down by 1.3%, thus underperforming large-cap indices. Indian markets have lagged behind most global markets as they struggle with both slowing macroeconomic indicators and weaker-than-expected microeconomic conditions,” shared Shrikant Chouhan, Head of Equity Research at Kotak Securities.
Additionally, the Q2FY25 earnings season has shown more disappointments than positives, noted Chouhan.
On the technical front, a doji candle formation has appeared near the Nifty’s 200-Day Exponential Moving Average (DEMA) support level, signaling uncertainty in the trend. The 200-DEMA, positioned around 23,540, sets up the 23,500-23,540 range as an immediate support zone for the index, according to Hrishikesh Yedve, AVP of Technical and Derivatives Research at Asit C. Mehta Investment Intermediates Ltd.
“A strong break below 23,500 will push the index further down to 23,300-23,200, where a trend line support is situated. Overall, the short-term trend is down, but as long as Nifty holds above 23,500, a pullback rally could be possible,” Yedve shared.
The Bank Nifty closed the day on a positive note, reaching 50,180 levels. Yedve highlighted that “Technically, the index on a daily scale has formed an inverted hammer candle near the crucial support of 200-DEMA, indicating strength.”
With the 200-DEMA support positioned near 49,900, any sustained levels above this support could lead to a pullback rally toward 50,500-50,600, where a short-term trendline resistance is observed. Despite a downtrend in the short term, as long as Bank Nifty stays above 49,900, a pullback remains possible, he further shared.
