The Indian stock market continues to display mixed sentiment, with key indices facing resistance in their short-term trends. The Nifty is expected to trade within a range of 22,425 to 22,590, based on the latest technical analysis. Despite some buying interest at lower levels, the market is struggling to maintain a positive outlook. The short-term trend for the Nifty remains bearish as it has repeatedly failed to sustain above critical moving averages (EMAs), namely the 10-day and 21-day EMAs, signaling a weakening momentum.
A slightly bearish candlestick formation with a long lower shadow suggests that buying interest is emerging at lower levels, but there are continued challenges near the 21-day EMA and the midline of the Bollinger Bands. A fall below the key support zone of 22,300 to 22,330 could potentially trigger a sharp sell-off, further dampening market sentiment. Key resistance levels for the Nifty are seen at 22,560, 22,625, and 22,670, while support remains strong in the 22,330 to 22,300 range.
Additionally, the market’s volatility is expected to rise with option expiry and the final session of the week approaching, possibly setting the tone for the upcoming week. Investors will need to closely monitor the Nifty’s ability to sustain above these support zones to avoid further downside risk.
On the other hand, the Nifty Bank index showed some positive movement, forming a bullish candlestick despite trading below all major EMAs (10, 21, 63, 100, and 200-day). This suggests that while there is buying interest at lower levels, selling pressure continues at higher levels. The Bank Nifty’s resistance is noted at 48,200, 48,280, and 48,420, with support at crucial levels of 47,890, 47,800, and 47,660. The immediate support at 47,700 remains a pivotal level to watch.
The Bank Nifty’s recent upward movement from 47,800 to 48,000, gaining 203 points, shows that buying interest is present, though the index still faces challenges in reclaiming higher levels. Fibonacci analysis places key resistance at 49,290 and 50,282, with support levels positioned at 47,872 and 46,078.
Investors should remain cautious in the current market environment and focus on the critical support and resistance zones for both Nifty and Bank Nifty. Tracking the global market cues, especially US futures, and domestic news developments will also be important for understanding the broader market direction.
