Nifty Consolidates Ahead of Major Earnings
The Indian stock market has been on a rollercoaster ride in recent weeks, with the NSE Nifty 50 and BSE Sensex experiencing significant fluctuations. However, the index has finally found some stability, with the Nifty 50 consolidating around the 24,700 level after three consecutive sessions of decline.
According to Osho Krishan, chief manager of technical and derivative research at Angel One, the Nifty 50 has found critical support at 24,700 levels, which is a significant development for investors and traders.
“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.
Key Resistance Levels to Watch
On the upside, the 20-DEMA, situated around 25,200-25,250, presents a formidable resistance barrier, according to Krishan. This level is crucial for investors and traders who are looking to buy the dip.
The Nifty 50 also 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.
Bank Nifty Support Levels
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 Performance
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.
The Indian rupee ended Friday’s session on a weaker note, slipping eight paise to settle at 86.16 against the US dollar.
Conclusion
In conclusion, the Nifty 50 has found critical support at 24,700 levels, which is a significant development for investors and traders. However, the market is expected to remain volatile, and investors should keep a close eye on key resistance and support levels. With major earnings announcements upcoming, investors should also be prepared for potential price movements.
