The Nifty index started the session on a positive note and remained range-bound during the initial hour of trade. Later, the index witnessed a breakout from the consolidation zone and surged to an intraday high of 23,983. However, profit booking at higher levels limited the gains, and the index eventually settled at 23,907.
On the daily chart, Nifty formed a small-bodied candle with a noticeable upper wick, indicating selling pressure near higher levels. A similar pattern was observed in the previous session as well, suggesting that the 50-day EMA continues to act as a strong resistance zone.
Among sectoral indices, Nifty Media emerged as the top gainer, followed by Nifty Energy. On the other hand, Nifty Capital Market and Nifty Financial Services ended the session in the red. In stock-specific action, TMPV and Hindalco were among the top gainers, while ONGC and HDFC Bank closed with losses.
The Midcap Index mirrored the benchmark indices and formed a small-bodied bullish candle with a minor upper wick, indicating mild profit booking at elevated levels. Despite this, the Midcap Index touched a fresh all-time high and continued to outperform the Nifty Index.
Meanwhile, the Smallcap Index formed an indecision candle on the daily chart. Consecutive upper wicks over the last two sessions indicate emerging profit booking at higher levels.
Market breadth showed slight improvement, with the advance-decline ratio favouring the bulls by the close of trade. Out of the Nifty 500 universe, 284 stocks ended the session in the green.
Nifty Outlook
According to Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, the immediate resistance for Nifty is placed in the 24,030–24,050 zone. A sustained move above this range may extend the pullback towards 24,200, followed by 24,350 in the short term.
On the downside, immediate support is seen in the 23,720–23,700 zone.
Bank Nifty Outlook
Bank Nifty also moved out of its early consolidation phase and climbed to an intraday high of 55,222. However, profit booking at elevated levels dragged the index lower, resulting in a close at 54,854, down 0.43 percent.
On the daily chart, Bank Nifty formed a small-bodied bearish candle with a noticeable upper wick, indicating weakness at higher levels and the inability to sustain gains. Similar to Nifty, the index failed to hold above its 50-day EMA and closed below it. Additionally, the RSI has witnessed a mild correction, signalling lack of strong upward momentum.
The immediate resistance for Bank Nifty is placed in the 55,200–55,300 zone. A sustained move above this range may push the index towards 55,700 and later 56,100 in the short term.
On the downside, immediate support is placed in the 54,400–54,300 zone.
Disclaimer: Stock market investments are subject to market risks. Investors are advised to consult certified financial advisors before making investment decisions.
