NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Wednesday, February 05, 2025

The Nifty ended the previous session at 23,696.30, down 42.95 points or 0.18%. To sustain a positive trend, the index must trade above the key support level of 23,670.

In the previous session, the Nifty opened with a positive bias at 23,801.80 but failed to hold its momentum, gradually declining to an intraday low of 23,680.40 before closing at 23,696.30. Sector-wise, the top gainers included media, metals, PSU banks, and pharma, while realty, FMCG, and auto sectors faced losses. The market breadth remained positive, with 1,859 stocks advancing, 880 declining, and 120 remaining unchanged. The biggest gainers within the Nifty were ONGC, HINDALCO, APOLLOHOSP, and BPCL, whereas ASIANPAINT, TITAN, NESTLEIND, and HINDUNILVR were the major losers.

From a technical perspective, the index remains above its short-term moving averages, and momentum indicators continue to signal a bullish trend. However, the formation of a black candle on the daily chart, coupled with a close below the previous day's level, suggests a slightly negative bias. On the downside, intraday support is positioned at 23,670. If the index holds above this level, a rebound can be expected. Conversely, a breach below this level could extend the negative sentiment. Immediate intraday resistance is at 23,800, with further resistance at 23,900–24,000.

Intraday Levels: Support: 23,670, 23,570, 23,465 Resistance: 23,800, 23,900, 24,000 (15-Minute Charts)

Positional Trading Levels: Short-term Support: 23,500–23,000 Resistance: 24,200–24,775

 Conclusion:  While the Nifty remains in a bullish trend above its short-term moving averages, the formation of a black candle suggests caution. Holding above 23,670 is crucial for maintaining positive momentum, whereas a break below this level could lead to further weakness. Traders should watch key resistance levels at 23,800 for confirmation of renewed buying strength.

BANK NIFTY TECHNICAL OUTLOOK

In the preceding session, Bank Nifty closed at 50,343.05, registering a gain of 185.10 points. The technical indicators suggest a positive trend, with the index trading above its short-term moving averages. Although the index formed a small black candle on the daily chart, it closed above the previous candle's high, indicating that bullish momentum remains intact.

On the upside, the index faces intraday resistance at 50,500, and a breakout above this level could extend the rally toward the next short-term resistance at 50,700 On the downside, immediate support is at 50,200. If the index remains above this level, the positive trend is likely to continue. However, a break below 50,200 could lead to consolidation or a temporary pullback.

Intraday Levels: Support: 50,200, 49,900, 49,660 Resistance: 50,500, 50,800, 51,100

Positional Trading Levels: Short-term Support: 49,600–48,000 Resistance: 50,700–52,000

Conclusion:The overall sentiment remains bullish as long as Bank Nifty holds above 50,200. A move above 50,500 will reinforce positive momentum, targeting higher resistance levels. Traders should watch key levels closely, as a failure to sustain the above support could lead to short-term consolidation.