Technical View: Nifty could slip to 25,750 if it goes below 25,900, say experts; Bank Nifty forms a Doji on daily chart

Nifty inched up in early trade but later pared most of its gains as profit-booking led to sharp intraday swings.

The equity benchmarks settled marginally higher on Thursday after a volatile session, with investors turning cautious ahead of the Reserve Bank’s Monetary Policy Committee (MPC) outcome on Friday.

After a flat opening, the Nifty inched up in early trade but later pared most of its gains as profit-booking in heavyweight stocks led to sharp intraday swings. The index finally settled at 26,033.75, up 47.75 points or 0.18 percent. The Sensex closed at 85,265.32, higher by 158.51 points or 0.19 percent.

Weakness in the rupee also weighed on overall sentiment.

Analysts said the Nifty could slip to 25,750 if it falls below 25,900.

Ajit Mishra, SVP – Research, Religare Broking, said the index is still holding above its initial support near the 20-day exponential moving average (20-DEMA) around 25,950. "Renewed buying interest in private banks and IT is helping, but mixed trends in other heavyweight sectors and muted small-cap action are capping sentiment," he said.

Sudeep Shah, Head – Technical and Derivatives Research, SBI Securities, said the 25,900–25,870 band will act as an important support area for the Nifty. On the upside, he pegged resistance at 26,140–26,160. "A decisive move beyond either side could trigger a strong trend and set the tone for the next phase of the market," he said.

Nilesh Jain, Head – Technical and Derivatives Research (Equity Research), Centrum Broking, said a breakout above 26,100 will be critical for any move toward 26,250. "A break below 25,900, however, may drag the index down to 25,750," he said.

On Bank Nifty, Shah noted that the index formed a Doji on the daily chart, indicating indecision among traders ahead of the policy outcome. He said the 20-day EMA zone of 59,000–58,900 is likely to offer key support, while resistance stands at 59,600–59,700. A firm move beyond these levels could lead to a strong directional trend, he added.

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