The Nifty closed Wednesday's session at 24,471.70, down 112.10 points (-0.46%) after opening flat and remaining under pressure throughout the day. The index slipped from higher levels and closed near the lower end of the day's range, with the RSI standing at 56.10, retaining a positive zone despite the day's decline. The Sensex dropped 388.19 points (-0.49%) to settle at 78,154.25, having tanked as much as 494.18 points (-0.62%) during intraday trading to 78,048.26. From the Sensex pack, UltraTech Cement, Axis Bank, InterGlobe Aviation, Bharti Airtel, Bajaj Finance and Power Grid were among the major laggards, while Eternal, Infosys, Titan, HCL Tech and Tata Consultancy Services were the gainers. The week began with robust gains amplified by a CAS-led spike, but remained lacklustre for the remainder of the period, with a modest gap-down open on the final day weighing slightly on sentiment.
The Nifty has breached the 24,450-24,650 range on the downside and witnessed a sharp decline towards 24,280 (the 20-day moving average). According to Teji Mandi Investment Technologies, the crucial support levels for Nifty are 24,190-24,050, which correspond to the 50 per cent and 61.8 per cent Fibonacci retracement levels of the 23,606-24,774 rally. The daily momentum indicator has triggered a negative crossover, which signals a sell. In terms of levels, 24,450 will act as resistance as per the role reversal principle, while 24,190-24,050 is the support zone. The Sensex immediate support zone is placed at 78,000-77,800, while resistance is seen at 78,500-78,700. The broader trading range stands at 77,800-78,700, with the near-term bias remaining sideways.
Bank Nifty recovered from the 40-day average (57,278) support and resumed its upmove, with the immediate hurdle at 58,250, while 57,250 will act as short-term support. The momentum indicator has a positive crossover, which signals a buy. The price structure suggests range-bound price action between 57,100-58,300 over the next few trading sessions. Until a decisive breakout above the 24,650 mark or a clear break below 24,300 levels, adopting a strategy to buy any dips to strong support zones remains a more viable approach than chasing momentum to the upside. The broader market continues witnessing profit booking, with the Midcap index hesitating near all-time highs. As highlighted by technical experts, the consolidation/choppy movement is likely to continue for the short term, with the next lower supports to be watched around 24,300 levels.
BHEL is recommended as a 'Buy' around ₹420 with a stop loss at ₹406 and target of ₹445, according to Teji Mandi Investment Technologies. The stock has recovered from the support confluence of ₹400-405 and formed a strong bullish candle on the daily chart. Stochastics exiting the oversold zone suggest the upmove is likely to continue. Aarti Industries is recommended as a 'Buy' around ₹532.95 with a stop loss at ₹515 and target of ₹565. The stock has broken out of a triangle pattern on the daily charts, suggesting the resumption of the next leg of the upmove. Positive crossover on the MACD suggests a Buy signal. These recommendations come as the market shows technical weakness with key support levels being tested across major indices.
The formation of a Doji candle on the weekly chart reflects indecision among participants at elevated levels, while the broader structure remains constructive, suggesting that the current range-bound trading pattern may persist until a clear directional move emerges. The Sensex continues to trade well above its 20-Day, 50-Day and 100-Day EMAs, indicating that the broader medium-term trend remains relatively resilient despite the recent technical deterioration. Apollo Hospitals Enterprise has witnessed a breakdown of the ₹9000-8800 range, suggesting a trend reversal with a sell recommendation around ₹8,567 with target ₹8,315.
