The NSE benchmark Nifty on Friday settled flat to end the eventful week up 314 points or 1.28 per cent over its previous week’s closing level.
The 50-pack index formed a bearish candle on the daily chart with a long lower wick, suggesting intraday selling was partially bought into. On the weekly chart, Nifty formed a bullish candle with a long upper wick, reflecting selling pressure at around 50-DMA levels, which analysts believe could be a key resisance level to track next week.
Despite optimism around policy reforms and supportive domestic factors, anlaysts said the market appears to be entering a consolidation phase, as investors are cautious given lingering tariff concerns and persistent foreign institutional outflows.
“That said, trading opportunities remain across sectors. Participants are advised to align their positions accordingly, with a focus on risk management,” said Ajit Mishra – SVP, Research, Religare Broking.
For the day, the 50-pack index closed at 24,741, up 6.70 points or 0.03 per cent. During the session the index breached below the important support of the 20DMA level of the 24708 zone, but managed to recover in the second half to close the session near the 24,750 zone, with the bias staying positive.
“The index would need to sustain above the 24600 zone, failing which the next crucial support would be at around the 24400 level, and on the upside, a decisive breach above the 25000 zone is necessary to trigger a fresh upward move in the coming days,” said Vaishali Parekh of PL Capital.
The index, meanwhile, made higher high on the weekly chart for the second straight week.
Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking said Nifty has managed to stay above its 21-DMA, currently placed around 24,700, but the recent momentum faced resistance near the 50-DMA at 24,980, which also aligns with the upper boundary of a symmetrical triangle pattern on the index.
“For a fresh leg of the uptrend, a decisive breakout above 25,000 is essential. A successful move above this level could open the gates for a rally towards 25,300, and eventually 25,500. On the downside, immediate support lies at the recent swing low of 24,520. Overall, Nifty is expected to consolidate within the broader range of 24,400-25,000 in the coming week,” Jain said.
Hrishikesh Yedve, AVP Technical and Derivative Research at Asit C Mehta Investment said the trend line resistance is placed around 25,000 level, which will act as a strong hurdle. He sees major supports ay 24,460 (150-DEMA) and 24,340 levels.
“We expect Nifty to consolidate in the band of 24,340-25,000 in the short term. Thus, short term traders are advised to buy near support and sell near resistance in short term,” Yedve said.