Sudeep Shah, Head – Technical and Derivatives Research at SBI Securities
Nifty faced strong resistance in the 26,230–26,235 zone, which coincides with the previous session’s high area and gradually drifted lower as the day progressed to close at 26,142 down 0.13%. For the second consecutive session, the index failed to register a decisive close above this resistance zone. On the daily chart, Nifty formed a small-bodied candle with pronounced upper wicks, highlighting persistent selling pressure at higher levels and an inability to sustain the upside momentum.
Going ahead, for Nifty, 26,200-26,250 will act as important resistance. Any sustained move above the 26,250 level could lead to continuation of an up move towards the 26,350 level, followed by 26,500. On the downside, the 20-day EMA zone of 26,050-26,000 will act as an immediate support for the index.
Since breaking below its upward-sloping trendline on 17th December, Bank Nifty has continued to trade beneath this key resistance. Despite multiple intraday attempts to reclaim the trendline and settle higher, the index has consistently failed to do so. Over the last five trading sessions, Bank Nifty has formed candles with noticeable upper wicks, indicating supply emerging at higher levels. A meaningful directional move is unlikely unless the index delivers a strong and decisive close above the trendline.
Going ahead, 59,000-58,900 will act as an immediate support for the index. Any sustainable move below the 58,900 level can lead Index moving down till 58,600 followed by 58,300 level in the short term. While on the upside, the zone of 59,500-59,600 will act as a strong resistance for the index.