Indian equity benchmarks are expected to remain range-bound on Tuesday, with analysts expecting the Nifty 50 to continue consolidating as investors track the ongoing earnings season, foreign fund flows and global cues.
On Tuesday, the Nifty ended at 24,238 after recovering from early weakness, while the Sensex settled at 77,708, as stock-specific action dominated trade.
According to Nandish Shah, Deputy Vice President at HDFC Securities, the benchmark index has remained stuck within a narrow trading range over the past two sessions.
He added that immediate resistance is placed around 24,530, while the 24,000 level remains a crucial support for the near term.
Shrikant Chouhan, Head of Equity Research at Kotak Securities, said the benchmark indices continue to form indecisive candlestick patterns, indicating that the current trading range could break in either direction.
“However, a meaningful breakout will be confirmed only if the Nifty surpasses 24,500 (Sensex 78,700) or slips below 24,000 (Sensex 76,800) on a closing basis. Until then, the market is likely to remain stock-specific with limited index movement,” Chouhan said.
He advised investors to use rallies to trim weaker positions while selectively accumulating quality stocks on declines.
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Meanwhile, Vikram Kasat, Head Advisory at PL Capital, believes broader market direction will be driven by macro and corporate developments in the coming days.
Bank Nifty Outlook
Bank Nifty ended Tuesday’s session on a subdued note, with technical analysts indicating that the index may continue to trade within a range unless it breaks key support or resistance levels.
Ponmudi R, CEO of Enrich Money, said the index showed signs of weakening momentum during the session.
“On the downside, the 57,600-57,500 zone acts as immediate support. A gradual break below this could drag the index towards the 57,300-57,200 zone in case of extended weakness,” he said.
Meanwhile, Sudeep Shah, Head of Technical and Derivatives Research at SBI Securities, noted that the broader trend remains positive despite the day’s subdued performance.
“Despite the day’s decline, Bank Nifty continues to trade above its key short-term and medium-term moving averages, suggesting that the broader trend remains constructive,” Shah said.
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