NIFTY TECHNICAL OUTLOOK

Based on Market Closing on Monday, February 24, 2025

Nifty closed at 22,553.35, down 242.55 points (-1.06%), signaling continued bearish momentum. If the index moves below the 22,500 support level, the downtrend is likely to extend further.

The session opened with a downward gap at 22,609.30, and the selling pressure persisted, dragging the index to an intraday low of 22,518.80 before closing near the day's low. Except for FMCG, auto, and pharma, all sectors closed in the red, with IT, metals, media, and realty being the biggest losers. Market breadth remained weak, with 639 stocks advancing, 2,109 declining, and 132 unchanged. Among the top gainers were M&M, Dr. Reddy’s, Eicher Motors, and Hero MotoCorp, while Wipro, HCL Tech, TCS, and Infosys led the losers' list.

Technically, the index remains below its short-term and long-term moving averages, and momentum indicators continue in oversold territory. The RSI at 29.80 on the daily chart suggests an oversold condition, and historically, Nifty has bounced back when RSI falls below 30, leading to a pullback rally. While the broader trend remains bearish, a short-term recovery cannot be ruled out.

On the downside, the key support zone is at 22,500, and if breached, the index could slide further in the coming sessions. On the upside, the nearest intraday resistance is at 22,620, and a sustained move above this level may trigger a pullback rally.

Intraday Levels: Support: 22,520, 22,430, 22,330 | Resistance: 22,620, 22,725, 22,825 (15-Minute Charts)

Positional Trading: Support: 22,500–22,000 | Resistance: 23,000–23,800

BANK NIFTY TECHNICAL OUTLOOK

Bank Nifty closed at 48,651.95, losing 329.25 points, signaling continued weakness. The index remains below its short-term and long-term moving averages, reinforcing a negative trend. On the daily chart, a Doji candle formation indicates indecision, but the close below the 48,750 support level suggests that the downtrend may extend further. If the index sustains below this level, the next short-term support is at 47,800.

For any signs of a reversal, the index must break above the immediate resistance at 48,800. A sustained move above this level could trigger a pullback, but failing to do so may lead to further downside movement.

Intraday Levels: Support: 48,600, 48,400, 48,200 | Resistance: 48,800, 49,050, 49,250 (15-Minute Charts)

Positional Trading: Support: 47,750–47,000 | Resistance: 48,750–50,000

While the broader trend remains bearish, traders should watch for a break above resistance for any potential reversal.