Stock Market LIVE Updates: Nifty remained sideways for major part of the day, facing strong resistance around the 24,840-24,850 zone, before breaking out towards the last hour of the day, closing at 24,894 with a gain of 0.23%. The index formed a bullish candle and gave a higher close for the second consecutive day. The index, also managed to close above the 100-day EMA zone of 24,740-24,750, suggesting that this zone is acting as immediate support.
Nifty trades comfortably above its 200-day EMA (24,411) but faces resistance from the 20-day EMA (24,914), which can cap the upside momentum. Sustaining above these levels is essential for further recovery.
The RSI has bounced from near oversold territory but remains tad below the neutral 50 mark, suggesting cautious optimism with scope for improvement. MACD remains in negative territory, but the histogram shows shrinking red bars, indicating that bearish momentum is gradually weakening and a bullish crossover could emerge if recovery extends.
Looking at key levels, the 24,920–24,950 zone will act as an immediate resistance for the Index. If the index manages to move above the level of 24,950, the pullback can extend further till 25,100 level. While, on the downside, the zone of 24,800-24,750 will act as a crucial support for the Index.
View by Sudeep Shah, head of technical and derivatives research at SBI Securities