Nifty near 200-DEMA; pullback or breakdown on cards? Check analysts view

Technical analysts reckon that the Nifty needs to break above 24,500 to regain positive momentum.

The NSE Nifty 50 has witnessed a tepid trend in recent days amid volatile crude oil prices and lingering uncertainty around the US-Iran war. Back home, the revival of FIIs' buying and strong Q1 earnings by select companies helped partly offset the negative sentiment.  On Friday, analysts reckon that the market may open on a cautious note despite positive cues from the overseas market as geopolitical risk persists. The Nifty last closed at 24,396.  "Softer US inflation and resilient global equities have provided a supportive backdrop, but the prolonged US-Iran impasse continues to sustain a geopolitical premium in energy markets, keeping investors selective and limiting aggressive risk-taking," says Hariselvan Radhakrishnan, Founder & CEO of HST Wealth.  From a technical perspective, Radhakrishnan believes that the 24,500-mark remains the immediate hurdle for the Nifty, and a sustained move above this level could improve momentum and pave the way for a stronger weekly close.  On the downside, the analyst expects support for the NSE benchmark index around the 24,265 region.  CHECK Stock Market LIVE Updates    Dhupesh Dhameja, Derivatives Research Analyst at SAMCO Securities highlights that the Nifty has been testing support around its 200-day exponential moving average (200-DEMA) near 24,385. He adds, that the index has not yet given a decisive closing breakdown below this level.   

 

 

  "A sustained close below the 200-DEMA would confirm further deterioration and could accelerate the corrective move towards 24,200–24,000," cautions Dhameja. Conversely, a move above 24,500 would be the first indication of stabilisation, he adds.  Nagaraj Shetti, Senior Technical Research Analyst at HDFC Securities flags that the underlying trend of Nifty remains choppy with a weak bias, with crucial support placed at 24,300 levels.  "As long as Nifty sustains above 24,200-24,300 levels there is a possibility of bounce back from the lower levels. Immediate resistance is placed at 24,500 levels," says Shetti.  Disclaimer: Views and outlook shared on the stock belong to the respective brokerages and are not endorsed by Business Standard. Readers' discretion is advised.