Nifty faces downward bias as index falls, Bank Nifty closes in the red

Nifty technical outlook based on market closing on Friday, September 27, 2024

In the last trading session, the Nifty closed at 26178.95, down -37.10 points or -0.14 percent. The downward bias will continue if the index moves below the intraday support level of 26150 points.

In the previous session, Nifty opened positively at 26248.30 and tested a record high of 26277.30 in the morning trade.

But the index failed to continue the momentum, and it gradually fell and hit the intraday low of 26151.40 before settling at 26,178.95.

The biggest sector gainers were the pharma, metal, PSU banks, and auto, while the losers were media, realty, banks, and financial services.

The market breadth was negative with 1294 stocks rising,1332 falling, and 102 remaining unchanged. 

The biggest gainers under the nifty were BPCL, Cipla, Sun Pharma, and Coal India, whereas the top losers were Power Grid, Bharti Airtel, HDFC Bank, and ICICI Bank.

Technical overview

Technically, momentum indicators signal a positive trend, and the Nifty remains above the short-term and long-term moving averages.

However, the index formed a small white candle on the daily chart and closed below the previous day's close.

This pattern indicates a slightly negative bias for the index. On the lower side, the index has intraday support at 26150 level.

If the index moves below this level, a negative trend can be expected today. The nearest intraday resistance is at 26225 levels. For a pullback rally, the index needs to surpass this level.

Key levels to watch

Intraday support: 26150, 26075, 26000

Intraday resistance: 26225, 26280-26350

Positional support: 25850 -25350

Positional resistance: 26400- 27000

Bank Nifty technical outlook

In the previous trading session, Bank Nifty closed at 53834.30, registering a loss of 541.05 points.

Technically, momentum indicators suggest a positive trend, and the index remains above its short-term and long-term moving averages.

However, the index formed a long black candle on the daily chart and closed below the previous day's close.

This pattern indicates the negative bias for the index. On the lower side, the index has intraday support at the 53800 level, while the resistance is at 54000.

If the index moves below the intraday support level of 53800, a further downside move can be expected today. Otherwise, a pullback rally is likely from the support area.

For intraday traders, support levels are at 53800, 53600, and 53400, while resistance levels are at 54000, 54200, and 54400, as indicated by the 15-minute charts.

Positional traders should watch short-term support at 53400–52100, with resistance at 54500–55600.