Indian stock market: Nifty 50 slips below 25,000 level. Where's it headed in short-term?

Mint

a day ago

Indian stock market: Indian stock market benchmarks began Monday's session on a weak note, weighed down by uncertainty surrounding trade negotiations with the U.S. and disappointing earnings from Kotak Mahindra Bank, which affected investor sentiment.
The BSE Sensex fell by 326 points, or 0.4%, to 81,136, while the Nifty50 declined 95 points, or 0.38%, to 24,736 around 9:18 am. However, markets quickly rebounded, recovering much of the initial losses by 9:40 am.
The Nifty continued its downward trend on Friday, falling below the key support level of 24,900 to close at 24,837, weighed down by negative global signals and underwhelming corporate earnings. Persistent selling dominated the session, leading to a cautious and corrective movement in prices.
' The major supports are at 24450 and 24000, but we will begin the week expecting downsides to not extend beyond the 24750-650 region. A swing higher is expected this week, but oscillator divergences seen in intraday periodicities that have signalled the same, are yet to be visible in larger time frames. This gives room for downside momentum to prevail over for some more time. However, direct rise above 24922 could initiate short covering. In such a scenario, 25324 may be played for, even though 25000 region may resist initially,' said Anand James, Chief Market Strategist, Geojit Investments Limited.
According to brokerage firm Choice Broking, Nifty is trading below its 20- and 50-day EMAs, indicating a bearish short-term trend.
' The next immediate support to watch is at 24,750, and if this level breaks, further correction may push the index down toward 24,580, near the 100-day EMA—an important technical support zone. On the upside, a decisive close above the 25,150 level would be needed to shift momentum positively, potentially opening targets near 25,500 and 25,700 in the coming week. Until then, the market outlook remains sideways to bearish, and a cautious stance with close monitoring of global and domestic triggers is advisable to navigate the prevailing volatility effectively,' the brokerage firm said.
Support Levels: 24750 - 24600
Resistance Levels: 25000-25600
Overall Bias: Sideways to Bearish
Bank Nifty ended lower on Friday, closing near 57,010 after facing resistance and rejection in the 57,200–57,300 zone, indicating ongoing consolidation with mixed momentum.
The brokerage firm said that the index is currently range-bound, with immediate resistance around 57,000; a sustained breakout above this level could trigger fresh buying, targeting resistance at 57,630.
' Breaking beyond 57,630 may fuel stronger bullish momentum toward higher targets of 58,000 and 58,500. Conversely, on the downside, a break below the critical support level of 56,275 could lead to a deeper corrective move toward 55,550 and 55,150. Given the current range-bound price action and uncertain momentum, a cautious approach with sound risk management is advisable for the coming week. Watching for a decisive close above 57,000 resistance or a break below 56,275 support will be critical to identifying the next meaningful directional move in Bank Nifty,' it added.
Bias- Sideways to Bearish
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