The breakdown below the 24,000 neckline zone, along with the 20-day and 50-day simple moving averages, confirms a loss of short-term trend support.
Om Mehra,
Technical Research Analyst,
SAMCO Securities
Nifty ended the session at 23,815.85, declining 1.49%, as the index remained under pressure throughout the session.
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The unfilled gap between 24,176 and 23,997 now becomes an important resistance zone on the daily chart.
The daily chart now reflects a pattern similar to a double top, forming a clear resistance zone. The breakdown below the 24,000 neckline zone, along with the 20-day and 50-day simple moving averages, confirms a loss of short-term trend support.
Nifty is now hovering around the 38.2% Fibonacci retracement level, placed near 23,770.
The RSI has dropped to 46, slipping below the neutral zone and its signal line, indicating weakening momentum. India VIX surged 10.17% to settle at 18.55, marking a sharp reversal from the recent lows.
On the downside, the 23,550–23,500 zone remains the immediate support area. A move below this level could accelerate the decline. On the upside, the 24,000–24,100 band, now aligned with the moving averages, becomes the immediate resistance zone. Unless Nifty reclaims this zone on a closing basis, the near-term outlook remains cautious, with rallies likely to face selling pressure.
Nifty Bank witnessed a gap-down opening and remained under pressure throughout the session, ending at 54,439.90, down 870.65 points, or 1.57%. The selling pressure intensified in the latter half of the session, dragging the index to an intraday low of 54,360.70 before a marginal recovery into the close.
The daily chart reflects an inverted cup and handle pattern, with the rounded top formation visible over the past several sessions and the recent breakdown confirming a bearish continuation setup. The index now trades below all its key moving averages, indicating that the broader short-term trend has weakened and the recovery from the March lows has lost directional strength.
The RSI has declined to 44, moving decisively below the neutral zone. The MACD has turned negative, while the histogram continues to deepen on the downside.
The 54,000–53,800 zone remains the immediate support area, and a breach below this level could extend the decline further.
On the upside, the 55,000–55,300 zone, now aligned with the moving averages and the unfilled gap area, becomes the immediate resistance band.
Unless Nifty Bank reclaims this zone on a closing basis, the near-term outlook is likely to remain under pressure.
