Nifty 50 Faces Resistance At 25,000: Bulls May Face Challenges Ahead
In a significant development for Indian equity markets, Dalal Street experts believe that if the benchmark NSE Nifty 50 fails to reclaim levels above 24,900 in the next session or two, bulls could face significant short-term challenges.
This comes after a phase of consolidation in the market, which has left investors and traders eagerly awaiting the next big move. As we delve deeper into the technical analysis of the Nifty 50, it becomes clear that the index is currently facing stiff resistance at the 25,000 levels.
Rupak De, senior technical analyst at LKP Securities, said that on the downside, immediate support for the index is seen at 24,700, followed by 24,500 while on the upside, resistance is now placed around 25,000.
This resistance level is likely to be a significant hurdle for the bulls, as a breach above 25,000 could set the stage for a further rally in the market. However, if the index fails to reclaim these levels, it could lead to a period of consolidation or even a correction in the market.
What’s Driving the Market?
India’s benchmark equity indices closed lower for the second straight day on Friday, weighed down by shares of Bajaj Finance Ltd., Infosys Ltd. and Reliance Industries Ltd. The indices recorded the longest weekly declining streak since Oct. 21, 2024.
The NSE Nifty 50 ended 225.1 points or 0.9% lower at 24,837, while the BSE Sensex closed 721.08 points or 0.88% down at 81,463.09.
This decline in the market was largely driven by the weak Q1 earnings reported by some of the top companies in the country. Bajaj Finance Ltd. reported a decline in net profit, while Infosys Ltd. reported a decline in revenue.
What’s Next for Traders?
Traders are advised to align their positions with the prevailing trend and refrain from averaging down on loss-making trades, according to Ajit Mishra, senior vice president – research at Religare Broking Ltd.
This means that traders should be cautious and avoid taking new positions in the market until the trend becomes clear. Instead, they should focus on managing their existing positions and adjusting their strategies accordingly.
Impact on the Rupee
The Indian rupee closed 11 paise weaker at 86.52 against the US dollar on Friday, slipping from Thursday’s close of 86.41, as a combination of global and domestic pressures weighed on the currency.
This decline in the rupee is likely to have a negative impact on the market, as it could lead to higher import costs and inflationary pressures. However, the central bank has been actively intervening in the foreign exchange market to stabilize the currency and maintain financial stability.
Nifty Levels to Watch
If the Nifty 50 fails to reclaim levels above 24,900 in the next session or two, bulls could face significant short-term challenges. The immediate support for the index is seen near 24,700, while the major support lies in the 24,450–24,550 zone.
Sensex Levels to Watch
The BSE Sensex is also facing a significant resistance level at 81,500, which could be a hurdle for the bulls in the short term. The immediate support for the index is seen near 80,700, while the major support lies in the 80,000–80,200 zone.
Conclusion
The Indian stock market is currently facing stiff resistance at the 25,000 levels, which could be a significant hurdle for the bulls in the short term. Traders are advised to align their positions with the prevailing trend and refrain from averaging down on loss-making trades. The immediate support for the Nifty 50 is seen near 24,700, while the major support lies in the 24,450–24,550 zone.
Focus Keywords: Nifty 50, Sensex, Indian stock market, technical analysis, bulls and bears
