Key Highlights
- Until a decisive breakout emerges, trading activity is expected to remain selective, with participants favouring stock-specific opportunities over broad-based positioning, especially as December-quarter earnings from index heavyweights begin to trickle in from next week.
- Vaishali Parekh, Vice President of Technical Research at Prabhudas Lilladher, believes the Indian stock market sentiment is cautious to positive as the Nifty 50 index is sustaining above the immediate support placed at 26,000 and the 50-DEMA support placed at 25,900.
- The Prabhudas Lilladher expert stated that the 50-stock index needs to sustain above this support level to strengthen the bull's conviction and potentially reach 26,500 in the near term.
- Speaking on the outlook of the Nifty 50 index, Vaishali Parekh said, “The Nifty 50, once again witnessed a sluggish session, finding resistance near the 26,180 zone during the intraday session and with a gradual drag, ended near the 26,140 zone with a doji pattern visible on the daily chart, with bias still maintained intact.
- With IT stocks among the major gainers, the index would have the major support positioned near the 50-DEMA level of 25,900 zone as mentioned earlier, which needs to be sustained to maintain the overall bias intact, whereas on the upside, the target of the 26,500 level is expected.” On the outlook of the Bank Nifty index, Parekh said, “The Bank Nifty index amid slight volatility erased some of the gains with overall rangebound movement visible to end the session near the 60,000 zone with bias still maintained positive and hoping for a revival in the coming sessions, with the index having the important support positioned near the 50-DEMA level at 58,700 zone, which needs to be sustained and as of now and once the near-term support at around 59,500 level is sustained, we can expect for further continuation of the upward move.” Parekh stated that immediate support for the Nifty 50 index is located at 26,000, while the resistance level is at 26,300.
