Technical View: Equity benchmarks closed in a limited range on Friday. The Asian markets saw a vigilant trend in the Asian markets following the decline in IT shares and the new business uncertainty arising out of the US court’s move to temporarily restore the mutual tariff. In addition, according to the official data released on Friday, India’s economic growth slowed to 7.4 percent in the March quarter. This reduced the annual growth rate to 6.5 percent during 2024-25. The increase in the January-March period was less than an increase of 8.4 percent in the quarter of a year ago. The Sensex fell 182.02 points or 0.22 percent to close at 81,451.01. During the session, it fell to 346.57 points to touched a low of 81,286.45. The Nifty fell 82.90 points or 0.33 percent to close at 24,750.70.
Analysts said that the Nifty is continuing trading within a narrow scope. Its 24,700–24,800 zone ahead of a decisive move is likely to set a tone for the next directional move.
LKP Securities Fatalary Day Opinion
“Nifty was Volatil on the first day of the June series with a negative trend,” said LKP Securities. “On the Hourli chart, the index has created a bearish moving average crossover. While RSI is pointing to shortterm weakness. Daily RSI also shows signs of tiredness with a negative diversion on the daily RSI.
He said that the level of 24,700 is acting as immediate support and a decline below this level can drop the index to 24,500. At the top, 24,800 remains a rigid resistance, where heavy call riding action has been observed.
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Ajit Mishra’s advice of Religare Broking
Ajit Mishra of Religare Broking advised that as long as the Nifty remains above its 20-day experiences, the DEMA (Dema), adopt the “by-on-Dips”. The 20-day experience in the index is currently close to the level of 24,600. “Breaking below this support zone may increase sales pressure. This can prolong the current stage of consolidation,” he said.
Bajaj Broking opinion on Nifty and Bank Nifty for next week
According to Bajaj Broking, the weekly chart of the Nifty is showing the formation of a small bearish candle. This formation remained within the range of last week, which is showing the ongoing consolidation in it. Sideways trading between 24,400 and 25,080 of the index is likely to continue in the near future.
Brokerage said, “The last two weeks made in the Nifty are between 25,050 and 25,080. A breakout over this band may trigger a new rally towards 25,300 in the Nifty.” However, failure to cross the upper end of this range may indicate further expansion of the consolidation released into the index. In the near period, the main support is between 24,400 and 24,500. This support is also matching with the recent 61.8 percent retracement level of recent uptrend from 23,935 to 25,116.
In the banking space, Bajaj Broking said that the bank Nifty is currently touching the upper range of the range of about five-week of 55,800-56,000. The index can pave the way for a rally towards 56,000 continuously than 56,000. However, immediate support is visible at 54,800 when it falls under it. While it has strong support between 54,000 and 53,500.
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