NIFTY
24,837 (-0.53%)
The BENCHMARK INDEX has posted its third straight decline, closing below the 25,000 mark. It has broken down from a Cup and Handle pattern and slipped below the rising trendline on the daily chart. The index continues to face resistance near its all-time high, reversing from the gap zone between 25,740 and 25,640.
The Relative Strength Index (RSI), after facing resistance at the retest zone, is now heading toward the oversold region. With RSI staying below 50, the overall sentiment remains bearish.
The benchmark index is currently trading below its 10-day and 20-day EMAs, while finding minor support at the 50-day EMA on the daily chart and the 10 EMA on the weekly chart. Bulls are struggling to hold ground, while bears appear to be tightening their grip — further supported by rising short positions from FIIs, indicating the correction may extend further.
Key Levels to Watch:
Crucial support is placed at 24,750 and 24,500, a breach of which could accelerate selling pressure. On the upside, immediate resistance is seen at 25,150, followed by a stronger hurdle near 25,250.
BANK NIFTY
56,529 (0.44%)
The BANKING INDEX witnessed a modest rally at the beginning of the week; however, the bulls lost momentum, and the index eventually closed near the previous week’s level. After three consecutive bearish weeks, the index seems to be attempting a mild pause in its decline, ending the week with a gain of 0.44%.
Despite the positive close, the index continues to struggle in sustaining higher levels, as each rise is met with selling pressure. It has been consolidating within a narrow range of 56,200 to 57,400.
On the momentum front, the RSI has slipped below the 55 mark on the daily time frame, indicating weakening strength. However, on the weekly chart, the RSI still holds within its bullish range. Moreover, the index is hovering close to its 10-week EMA, suggesting a potential mean reversion towards the 20-week EMA in the upcoming sessions.
For the week ahead, key support levels to monitor are 56,100 and 55,600, while resistance is expected around 56,900 and 57,500.
NIFTY MIDCAP 100
58,010 (-1.85%)
The MIDCAP 100 INDEX continues to struggle in crossing the 60,000 mark. It recently closed below 58,500—a key support level on the daily time frame—indicating weakness. Earlier this month, the index had formed an EVENING STAR candlestick pattern on the weekly chart, and the current price action reflects continued follow-up selling.
At present, the index remains range-bound between 57,000 and 60,000 and has now moved closer to the 10-day EMA on the weekly chart. On the daily time frame, it has closed below the 10, 20, and 50 EMAs, while on the weekly, it is just managing to hold above the 10 EMA.
Meanwhile, the momentum indicator RSI faced resistance at a descending trendline on the weekly chart. Although it has sustained above the 55 level, a close below this threshold could potentially trigger further bearish sentiment.
Going into the coming week, key support levels to watch are 57,000 and 56,000, whereas the index may face resistance near 58,800 and 59,500.
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Disclaimer: I am not a SEBI-registered advisor. The stock recommendations and analysis shared are purely for educational and informational purposes only. They should not be considered as investment advice. Please consult a SEBI-registered financial advisor before making any investment decisions. Investing in the stock market involves risk. Do your own research (DYOR).
