The Nifty 50 staged a significant rebound on Thursday, reclaiming key technical levels and snapping a seven-session losing streak. According to HDFC Securities, the index helped the Nifty reclaim its 50-day DEMA at 24,188 and 100-day DEMA at 24,203, signalling an improvement in near-term momentum. However, the index continues to trade below its 20-day EMA at 24,304 and 200-day EMA at 24,377, indicating that the broader short-term trend has not yet turned decisively positive. The 24,000 level remains a crucial support zone for the index, coinciding with the 61.8% retracement of the previous upswing and an upward-sloping trendline connecting the April, June and July swing lows on the daily chart.
The market rebound came after the Nifty had suffered seven consecutive sessions of losses, with the index opening with a gap-up and ending the session mildly higher. As per Enrich Money, Indian equities recovered as easing pressure in global bond markets and resilient domestic buying outweighed persistent geopolitical concerns. According to SBI Securities, the lack of strong follow-through buying at higher levels kept the upside capped, with the index trading largely range-bound through the day. The Sensex had previously declined 412 points or 0.53% to 76,823.91, while the Nifty 50 fell 127 points or 0.53% to 24,027.90, marking the 12th consecutive lower high and seventh consecutive losing session.
According to HDFC Securities, sustained buying above 24,375 will be crucial to negate the prevailing short-term downtrend and open the door for further recovery. Until then, the 24,000-24,050 band is likely to remain an important support area, while 24,300-24,375 could act as the immediate resistance zone. The contrasting technical signals suggest that while the Nifty has improved from its recent lows, it remains at a critical juncture. Reclaiming the 50-day and 100-day DMAs has strengthened near-term momentum, but the index still needs to overcome the 20-day EMA and 200-day EMA to establish a more convincing recovery.
Bank Nifty continued to trade within a narrow range of 884 points over the past few sessions, indicating a lack of directional momentum. According to SBI Securities, the key moving averages remain flat, while momentum indicators and oscillators are also suggesting a sideways trend in the near term. The 57800-57900 zone is likely to act as a key resistance, while 57100-57000 remains an important support area. "A decisive breakout above 57900 or a breakdown below 57000 could trigger a strong trending move and set the tone for the index's next directional phase," said Shah from SBI Securities.
