The crucial support level for NSE Nifty 50 stays at the psychological mark of 26,000, even as the frontline index declined for a third consecutive day in a row.
The Nifty sees support at 26,000-25,950 levels, according to Osho Krishan, chief manager – technical and derivative research at Angel One said.
“In terms of key levels, the subzone of 26,000-25,950 is expected to provide support against potential declines, while the critical support level, marked by a bullish candle, is around 25,850,” Krishnan said.
The Nifty index has formed a bearish candle with a lower high and lower low, highlighting extension of the corrective consolidation on the weekly expiry session, according to Bajaj Broking Research.
“We believe the current breather should be used to accumulate quality stocks for the next leg of upmove towards 26,500 levels,” Bajaj Broking said.
Krishnan identified resistance at 26,200-26,325 levels. “Conversely, intermediate resistance is identified around 26,200, followed by a more formidable barrier at 26,325,” he said.
According to Krishnan, overall market outlook remains bullish, with declines likely presenting favorable opportunities for buyers.
“The last two-months uptrend has remained well within a rising channel, indicating overall positive bias,” Bajaj Broking Research said.
“Going ahead, market participants are advised to maintain firm risk management and exclusivity in stock selection while volatility persists,” Krishnan said.
“Additionally, it is recommended to stay vigilant with the global developments, which may act as catalysts for the domestic market,” he added.
Bank Nifty
Krishnan identified the the resistance of the Bank Nifty index within the range of 59,600-59,800 levels.
Bank Nifty has formed a small bearish candle with a long upper shadow signaling extension of the corrective decline for the second session in a row, according to Bajaj Broking Research.
“We expect the index to consolidate and form a base in the range of 58,500-60,100 in the coming sessions ahead of the RBI monetary policy outcome,” Bajaj Broking said.
The brokerage identified key support at 58,300-58,600, with these levels being the confluence of the last two weeks lows and recent breakout area. “Holding above the support area will keep the short-term bias positive,” the brokerage noted.
Markets Recap
The benchmark Nifty 50 fell for the third straight day; close above 26,000. The index saw a decline of 0.55%, with a downturn of 143.55 points, closing at 26,032.20. The benchmarks slightly underperformed in contrast to broader market indices. ICICI Bank Ltd. and Axis Bank Ltd. fell the most in trade.
. Read more on Markets by NDTV Profit.