Analysts point to 24,900 as a key support and 25,100 as a breakout level. Sentiment remains cautiously bullish, hinging on a decisive move.
Indian equity markets hold on to gains in morning trade on Tuesday, with the Nifty index hovering below the 25,000 level, led by gains in auto and energy stocks.
Will the index break past the psychological 25,000 mark? SEBI-registered analysts shared their market outlook on Stocktwits.
Nifty Levels To Watch
Analyst Manjushri Sharma noted that on the 1-hour chart, Nifty is seen consolidating in a pennant formation between 25,100 and 24,900 levels. She identified a support zone at 24900al, which is also near the unfilled gap & 200-day moving average.
Resistance is seen at 25,100, and a decisive breakout above this may trigger bullish momentum towards 25,300. But a break below 24,900 may invite weakness towards 24,750, she added.
Sharma highlighted that its Relative Strength Index (RSI) was consolidating near 61, indicating momentum buildup. Derivatives data shows the highest intraday Call writing at 25000 and Put writing at 24900.
Her bias is bullish above 25,100, with a Nifty target of 25,300. But the bias turns bearish on a break below 24,900, for a target at 24,750.
Bharat Sharma of Stockace Financial Services noted that on Monday, the Nifty failed to sustain above 25,000, but the pullback was primarily due to profit booking, with no intense selling pressure. Looking ahead, the market should not be considered strongly bullish unless it remains above 25,000.
From a positional perspective, the Nifty traded below the immediate previous peak and the downward trendline, which indicated that caution was necessary. For intraday, he identified immediate support around 24,870–24,880, near the 20 EMA on the 15-minute timeframe. On the upside, immediate resistance is seen at 24,920, which, if breached, could lead to 25,000 and 25,100.
What Is The Retail Mood?
Data on Stocktwits shows that retail sentiment has moved from ‘neutral’ to ‘bullish’ on the Nifty index by 11:00 am.
The Nifty index has risen 5% year-to-date (YTD).
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