1 day ago
This week began on a slightly positive note but quickly turned weak, as the Nifty extended Friday's decline and slipped below the crucial 24,900 mark. After opening 31 points higher, the index came under immediate selling pressure, eventually falling 86 points to hit an intraday low of 24,882.
However, the weakness was short-lived. Post 9:35 am, the Nifty sharply reversed course, recovering 229 points from the day's low, driven by strong buying interest in the private banking space. This provided the much-needed support that helped the benchmark bounce back as the session progressed.
Eventually, the Nifty closed with gains of around half a percent, settling just below the 25,100 mark.
ICICI Bank, HDFC Bank, and Eicher Motors were among the top gainers on the index, while Reliance Industries, Wipro, and IndusInd Bank ended as major losers.
Among sectoral indices, Nifty Financial Services, Nifty Bank, and Metals contributed significantly to the recovery. In contrast, Oil & Gas, PSU Banks, and FMCG faced sharp declines, capping broader market gains.
The Nifty Midcap 100 Index rose 0.62%, while the Nifty Smallcap 100 Index underperformed, ending the day flat.
Looking ahead, investor focus will shift to upcoming earnings reports from One 97 Communications, Dalmia Bharat, Zee Entertainment Enterprises, Dixon Technologies, ideaForge Technology, IRFC, and Cyient DLM.
Stocks like Havells India and Oberoi Realty, which are scheduled to report results post market hours, will also remain in focus.
What do the Nifty 50 charts indicate?
The Nifty remained volatile throughout the session as traders awaited clarity on ongoing US-India developments.
According to Nagaraj Shetti of HDFC Securities, Monday's swing low of 24,882 may now be considered a new lower low in the pattern. "Hence, any further upside could be a sell-on-rise opportunity," he said.
Shetti added that while the short-term trend remains weak, a decisive move above 25,250 could negate the prevailing bearish sentiment. If the index fails to break higher, it may revisit the recent low of 24,882.
Rupak De of LKP Securities mentioned that the Nifty found support near its 50-day EMA on the daily timeframe, triggering an intraday rebound. Going forward, 24,900 remains a crucial support level. A decisive breakdown below this could embolden bears, while resistance lies in the 25,200-25,260 range.
Nandish Shah of HDFC Securities pointed out that for the past two sessions, the Nifty has respected its 50-day EMA, currently placed at 24,938.
"Today's rebound from this support and a strong close raises the probability of further upside. Traders should exit shorts and consider fresh longs with a stop-loss at 24,900. On the upside, 25,255 may act as immediate resistance," he said.
Rajesh Bhosale of Angel One called 24,900 a "make-or-break zone" for the bulls. "As long as this level holds, the broader outlook remains constructive. The 25,200–25,250 zone, which coincides with the 20-day EMA and last week's swing high, is a key resistance area. A breakout above this could signal the resumption of the uptrend," he added.
What do the Nifty Bank charts indicate?
The Nifty Bank index ended the session at 56,952.75, up 1.19%, marking its strongest single-day gain in over two weeks. After testing its rising trendline, the index staged a sharp rebound and formed a bullish candle on the daily chart.
It also reclaimed its 9-day EMA, suggesting that the short-term downtrend may be easing, though the index remains below its 20-day EMA.
According to Om Mehra of SAMCO Securities, 56,600 will act as immediate support, coinciding with the rising trendline. On the upside, a close above 57,100–57,200 could unlock further momentum toward 57,450.
