Based on market closing on February 24
The Nifty ended the previous session at 22553.35, down -242.55 points or 1.06 percent. The downtrend could continue If the index moves below the support level of 22500. Nifty opened with a downward gap at 22,609.30, extending its negative trend throughout the session.
The index hit an intraday low of 22,518.80 before closing at 22,553.35. All the sectors other than FMCG, auto, and pharma were closed on negative bias. The biggest sector losers were the IT, metals, media, and realty.
The market breadth remained negative, with 639 stocks advancing, 2109 declining, and 132 unchanged.
The biggest gainers under the nifty were, M&M, DRREDDY, EICHERMOT, and HEROMOTOCO, whereas the major losers were WIPRO, HCLTECH, TCS, and INFY.
The momentum indicators continue in the oversold region, with the index trading below its short-term and long-term moving averages.
The index formed a black candle on the daily chart and closed well below the previous day's close. All these indicate that the momentum remains in favor of the bears.
On the lower side, key support lies in the 22,500 range. If the index moves below this level, the downtrend can continue in the coming days.
However, the technical indicators signal the market is in the over-sold region. The RSI is 29.80 on the daily chart, indicating an oversold condition.
Historically, whenever RSI drops below 30, Nifty has witnessed a pullback rally. While the overall trend remains bearish, a short-term rebound cannot be ruled out.
The nearest intraday resistance is at 22620 levels. The index must trade and sustain above this level for a potential pullback rally.
Support - 22520, 22430, 22330
Resistance 22620, 22725-22825 (15-Minute Charts)
Short-term support - 22500-22000
Resistance - 23000- 23800.
In the preceding session, Bank Nifty closed at 48651.95, registering a loss of 329.25 points. The technical parameters indicate a negative trend.
The index remains below its short-term and long-term moving averages. The index formed a Doji candle on the daily chart and closed below the previous support level
at 48750. If the index remains below this level the downtrend can continue in the coming days.
The next short-term support is at 47800 levels. For a positive trend, the index needs to surpass the intraday resistance level of 48800.
As indicated by the 15-minute charts, intraday traders' support levels are 48600, 48400, and 48200, while resistance levels are 48800, 49050, and 49250.
Positional traders should watch short-term support at 47750–47000, with resistance at 48750–50000.
