Nifty taking a breather as it nears record high; key levels to track

The Nifty can rally to 26,350 - 26,500 as and when it clears the 26,200 hurdle, says Drumil Vithlani, Technical Analyst of Bonanza.

The NSE Nifty 50 index was seen taking a breather in trades on Friday, after reaching within striking distance of its all-time high a day earlier.  At 11.20 AM, the Nifty was down 100 points or 0.40 per cent at 26,090 levels. In trades yesterday, the Nifty hit a high of 26,246.65, and was fairly close to its all-time high of 26,277 registered on September 27, 2024.  Analysts believe that the current market momentum can take Nifty to new highs in the near-term.  Drumil Vithlani, Technical Analyst at Bonanza highlights that the Nifty has been making higher-highs and higher-lows for the last few trading sessions. Further, futures & options data also shows that foreign investors have been covering some shorts positions in recent days.  The analyst expects Nifty to rise to 26,350 - 26,500 in the near-term, as and when the index clears the 26,200 hurdle.  CATCH STOCK MARKET UPDATES TODAY LIVE  "On the downside, the 9-day moving average at 25,900 and the week's low at 25,850 are likely to act as key near-term support for the Nifty", said Drumil Vithlani. The analyst said he would maintain a buy on dips approach.

  Nifty on technical charts: Key takeaways

  Current Level: 26,090  Support: 25,845; 25,560  Resistance: 26,150; 26,500    The Nifty 50 index is seen quoting above the 20-Day Moving Average, which in general is considered as the short-term support for the last two weeks. The 20-DMA indicates near support for the NSE index at 25,845 levels. Below which, the key short-term support stands at 25,560 in the form of the super trend line, shows the daily chart. 

 

  ALSO READ | BSE Smallcap index hits over 7-week low in trade; Symphony, CMS Info slip  That apart, the Nifty seems to be favourably placed on the charts quoting above the key moving averages across time-frames. The shorter-term moving averages are placed above the longer-term moving averages, which further reinstates the positive trend.  On the upside, the Nifty is seen testing resistance around the higher-end of the Bollinger Bands on the weekly chart around 26,150 levels, above which the monthly Bollinger Bands show presence of hurdle around 26,500 levels.