Nifty To Find Key Support At 25,000-24,800 As Weakness Persists
The Indian stock market failed to extend its strong momentum from the previous session and ended in the red on Friday. Volatility persisted and widespread selling emerged amid a weaker rupee and continued FII outflows. Analysts project that this weak sentiment is likely to continue.
“Nifty on the weekly chart has formed a sizable bearish candle with a lower high and lower low highlighting continuation of downward bias for the third week in a row,” said Bajaj Broking Research.
Key support area lies between 25,000-24,800. While on the upside, 25,400-25,500 will act as immediate resistance for the coming weeks.
“Further below, the market could slip to 24700,–24,500,” said Amol Athawade VP, technical research at Kotak Securities.
Overall, markets will continue to track developments around global trade negotiations and geopolitical dynamics, while stock-specific action is expected to remain driven by ongoing Q3 earnings announcements, as per Siddhartha Khemka, head of research, wealth management, Motilal Oswal Financial Services.
Bank Nifty
The Nifty Bank index is going to continue its corrective bias, as per analysts.
“The Bank Nifty on the weekly chart has formed a sizable bearish candlestick pattern with a lower high and a lower low signaling corrective bias,” said Bajaj Broking Research.
The key support levels for the index are 25,000-24,800 while on the higher side 25,400-25,500 will act as immediate resistance for the coming weeks.
“For Bank Nifty, 58,000 would act as a key level for traders. Below this, the correction wave is likely to continue until 57,500–57100. Conversely, above 59,000, it could bounce back up to 59,350–59,500,” stated Athawale from Kotak Securities.
Market Recap
The Nifty closed 241.25 points or 0.95% lower at 25,048.65, while the Sensex declined 769.67 points or 0.94% to close at 81,537.70. Both the benchmarks registered losses of around 2.5% each.
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