The equity benchmark indices settled nearly flat on Friday after a volatile session, offering a brief pause following recent declines.
This marked the third straight session of decline for domestic equities as sustained foreign fund outflows and weak global cues weighed on investor sentiment. After a subdued opening, the Nifty recovered part of its losses during the day before ending marginally in the red.
The Sensex fell 94.73 points, or 0.11 percent to close at 83,216.28. During the day, it dropped 640.06 points, or 0.76 percent to 82,670.95. The Nifty settled lower by 17.40 points, or 0.07 percent at 25,492.30.
Market experts said the Nifty would remain a "sell on rise" as long as it trades below the 25,600 mark, while Bank Nifty’s immediate support lies at 57,300.
"Lately, Nifty has been trading below the 50-day exponential moving average, indicating near-term weakness," said Rupak De, Senior Technical Analyst at LKP Securities.
"The index has been falling since forming a double top around 26,100 on the hourly chart. It has also slipped below a key moving average, reinforcing a bearish tone. Resistance is seen at 25,600, and as long as the index stays below this level, the trend is likely to favour a sell-on-rise approach. On the downside, support is placed at 25,400, and a break below this level could strengthen bearish sentiment," he added.
Ajit Mishra, Senior Vice President – Research, Religare Broking Ltd, said the Nifty held its trendline support on the daily chart after retracing nearly half of its previous rally. "A sustained move above 25,600 could help restore confidence and lead to a test of the 25,800–26,000 range. On the lower side, 25,300 will act as key support," he said.
For the banking index, the 20-day exponential moving average zone of 57,400–57,300 will act as immediate support, according to Sudeep Shah, Head – Technical Research and Derivatives, SBI Securities.
"A breach below 57,300 could push the index towards 56,800, while resistance is seen around 58,200–58,300. A sustained move above 58,300 may open the way for a rise towards 58,700," he said.
Analysts said the current phase reflects cautious sentiment among market participants amid persistent global uncertainties and the absence of major domestic triggers.
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