Short term - Technical Outlook

The Nifty 50 continues to remain in a short-term corrective phase following last week’s breakdown and is currently trading below its key short-term moving averages, including the 20-day, 50-day and 100-day EMAs. The index is still struggling to reclaim the important psychological level of 25,000, indicating that selling pressure continues to dominate near higher levels. Immediate support for the index is placed in the 24,300–24,200 zone, which has historically attracted buying interest. A decisive breakdown below this range could open the door for a further decline toward the 23,800 region. If selling pressure intensifies further, the next major horizontal support level is seen near the 22,000 mark, which may act as a broader structural support for the index.

On the upside, near-term resistance is placed in the 24,600–24,700 range, while a stronger resistance zone remains near 24,900–25,000. A sustained move above this region would be required to improve the short-term technical structure and signal the possibility of a meaningful recovery.

Momentum indicators continue to reflect weakness. The Relative Strength Index (RSI) is currently hovering near 33, approaching oversold territory but not yet showing a clear reversal signal. At the same time, the MACD remains in negative territory, indicating that bearish momentum continues to dominate the current trend. The index is expected to trade with a cautious bias in the near term unless it manages to decisively reclaim its immediate resistance levels.

Short term Research Report Call
Buy Above: 24600 | Targets: 24700, 24800, 24900 | Stop-loss: 24500
Sell Below: 24300 | Targets: 24200, 24100, 24000 | Stop-loss: 24400
 

Short term Chart

Long term - Technical Outlook

Nifty 50 has reaffirmed short-term weakness following sharp decline. The immediate and critical support zone lies at 24,200–24,000, with the 24,000 mark acting as a key psychological level. A clear breakdown below this level may intensify selling pressure and drag the index toward 23,800–23,400. On the upside, the 24,600–27,000 band now acts as a key resistance area, as earlier support has turned into a barrier; a sustained move above this range is essential for near-term stabilization. Momentum indicators remain weak, with the RSI hovering around 30, signaling fading strength, while MACD sell signals continue to reflect prevailing bearish momentum. Overall, the downside bias remains intact unless the index posts a decisive close above the 25,000–25,300 region.

Long term Research Report Call
Buy Above: 24800 | Targets: 24900, 24980, 25080 | Stop-loss: 24700
Sell Below: 24500 | Targets: 24430, 24330, 24240 | Stop-loss: 24550
 

Long term Chart

The Indian stock market opened with a sharp gap-down and continues to hover near a critical support zone, reflecting lingering investor caution after last week’s steep correction. The weak start underscores a clear risk-off tone, as market participants remain wary of deploying fresh capital amid mounting geopolitical uncertainties. Near-term sentiment remains pressured by escalating tensions in the Middle East, which have kept crude oil prices elevated and intensified concerns over inflation risks and India’s rising import bill. The sustained surge in energy prices is also reviving fears of macroeconomic strain, adding another layer of caution to market positioning.

Against this backdrop, investor confidence remains fragile and defensively positioned. Trading is likely to stay volatile and largely range-bound with a downside bias in the near term, unless geopolitical tensions show signs of easing, crude oil prices stabilize, or stronger macroeconomic triggers emerge to restore market confidence.

Nifty 50 

The Nifty 50 opened with a sharp gap-down near 23,872 and has since extended its decline to around 23,697, reinforcing the prevailing bearish undertone in the market. The sustained weakness indicates continued selling pressure, with market participants adopting a cautious stance amid fragile sentiment. Immediate support is now seen near the 23,600 level, which aligns with a key breakout zone from April 2025 and therefore holds significant technical importance. A decisive breach below this support could trigger further downside momentum, potentially dragging the index toward the 23,400–23,300 zone in the near term. Momentum indicators continue to signal pronounced weakness, with the RSI in the mid-20s indicating deeply oversold conditions, while the MACD remains firmly in negative territory with a widening histogram, underscoring strong bearish momentum. Given the current technical structure, the near-term approach favors selling on rallies, with the overall bias remaining bearish and downside risks elevated. From a longer-term perspective, a major horizontal support is seen near the 21,800 range.

Bank Nifty

Bank Nifty opened with a sharp gap-down near 56,121, underperforming the broader market as heavy selling in PSU banking stocks weighed on the index. The decline was largely driven by weakness in public sector banks, dragging the overall banking index lower toward the 55,440 region. Immediate support is placed around 55,000, and if this level breaks, the next support would be seen in the 54,200–53,600 zone. Overall, the near-term bias remains negative to range-bound, with downside risks persisting unless a clear reversal signal emerges.