The 26,000–26,100 zone is expected to act as a hurdle on the upside for the Nifty 50, while support is placed in the 25,850–25,800 range, according to experts.
Bank stocks: Despite the recovery, analysts advise caution after a four-session losing streak. Check key support and resistance levels to watch out for.
In case of a further fall, the Nifty 50 may take support at 25,800 (50-day EMA) and around 25,700 (December low). However, a decisive break below these levels can strengthen the bears.
The next support is placed at the 50 EMA (25,830), followed by 25,726 as a key support zone. If the Nifty 50 breaks below 25,726, the higher high–higher low formation could get negated and bears may take control.
The above options data also suggest that the 26,000–26,200 zone is expected to act as resistance for the Nifty 50, while support is placed at the 25,900–25,800 levels.
The Nifty 50 may consolidate as long as it trades below 26,250, with immediate support at 26,000–25,950, followed by 25,800 being key support, while a decisive move above this level could push the index toward 26,350–26,500.
If the index falls and sustains below the immediate key support of the 26,000–25,950 zone, selling pressure may widen; however, holding above this zone could take the index toward the 26,100–26,150 zone. The trading range for the next couple of sessions could be 25,950–26,300.
Market participants cited foreign fund outflows and the absence of major domestic triggers for the cautious sentiment.
Milan Vaishnav believes the Nifty IT Index is breaking out from a multi-month consolidation and may inch meaningfully higher from current levels.
As long as the Nifty 50 defends the 26,100–26,000 support zone, a move toward 26,250–26,400 remains possible despite ongoing consolidation.
According to experts, the consolidation may continue for one or two more sessions; however, they remain hopeful of an upward journey toward the 26,300 and 26,500 levels in Nifty 50 in the short term, given the positive technical and momentum indicators.
The monthly options data suggested a resistance range of 26,200–26,500, with crucial support at 26,000 for the Nifty 50.
Bank Nifty: Citi placed a 90-day positive catalyst watch on HDFC Bank and Kotak Mahindra Bank, while downgrading Federal Bank to "neutral" after a sharp rally.
If the Nifty 50 gives a convincing close above 26,200, the levels of 26,325 (record high), followed by 26,500, cannot be ruled out. However, 26,000 is acting as the immediate key support, followed by 25,800.
The immediate hurdle is placed at 26,200, and sustaining above it is required for a sharp market run. Until then, consolidation may be seen in the Nifty 50, with immediate key support at 26,000.
The India VIX hit a fresh record closing low of 9.38, down 3.07 percent, offering reassurance to the prevailing bullish sentiment. So far this month, the VIX has fallen 19.28 percent.
The positive trend is expected to continue despite any intermittent consolidation, with the Nifty 50 immediately eyeing 26,200, followed by 26,326 (record high) as a key resistance zone, while key support is placed at the 26,000 mark.
If the Nifty 50 reclaims and sustains above 26,200, a move toward the record high of 26,326 cannot be ruled out in the upcoming sessions. The immediate and crucial support is placed at the 26,000 zone, according to experts.
Weekly options data suggested immediate resistance for the Nifty 50 at the 26,200–26,300 zone, with support seen in the 26,100–26,000 range.
The immediate resistance for the Nifty 50 is expected to be in the 26,050–26,100 range, as a convincing move above this zone could open the door for a rally toward record highs, with 25,800–25,700 acting as crucial support.
Hence, if the Nifty 50 maintains its upward journey and sustains above the 26,000 zone, the 26,200–26,300 levels will be crucial to watch in the upcoming sessions. However, the 25,800–25,700 zone is expected to act as a key support, according to experts.
From a technical standpoint, the prevailing chart structure of both sectors - banking and IT - suggests that they are well-positioned to continue providing support to the frontline indices, making them the likely drivers of any near-term rally, Sudeep Shah said.
Weekly options data suggest that the Nifty 50 is expected to face a hurdle in the 26,000–26,200 zone, with support at the 25,900–25,800 levels.
The Nifty 50 is expected to remain in the 25,700 (support) and 25,900–26,000 (resistance) range, as a decisive break on either side could provide directional clarity.
If the Nifty 50 rebounds, the 25,900–26,000 zone can act as a hurdle on the upside; however, a decisive fall below 25,750–25,700 could open the door to the 25,500–25,450 zone, experts said.