The Nifty index had a rough day on Thursday, dropping 1% to fall below 25,900. This marks a significant shift, as it broke out of its upward trend. It’s also the first time since early October that the Nifty closed below its 50-day exponential moving average (EMA), a level that had previously provided strong support.
Market sentiment was largely negative. Out of the 50 stocks in the Nifty, 45 saw declines. Hindalco and Wipro were among the biggest losers, while Eternal and SBI Life managed to finish in the green. Every sector faced selling pressure, with Nifty Metal, Nifty Oil & Gas, and Nifty PSU Bank being hit the hardest.
The broader markets also struggled. The Nifty Midcap 100 and Nifty Smallcap 100 fell nearly 2%. The Midcap index dropped below its 20-day EMA, while the Smallcap index fell below all its key moving averages. This paints a picture of declining market confidence, as 425 stocks from the Nifty 500 ended in negative territory.
Looking ahead, the key support levels for the Nifty are between 25,750 and 25,700. If it falls below 25,700, it could drop further to 25,550. On the upside, the 26,000 to 26,030 range could present a challenge for any upward movement.
For Bank Nifty, the outlook is slightly better. It ended the day down 0.51%, performing better compared to the Nifty. Despite this drop, it remains above key moving averages, indicating that the overall trend is still positive. However, indicators suggest that the index may consolidate in the near term.
Immediate support for Bank Nifty lies between 59,400 and 59,300. If it stays above 59,400, the bullish trend remains intact. The 59,900 to 60,000 zone may act as a critical resistance point.
### Expert Insight
According to Sudeep Shah, head of technical and derivatives research at SBI Securities, “The overall market sentiment is leaning towards caution. Investors should watch for confirmation that a rebound is in play before making significant moves.”
### Market Trends and Statistics
A recent survey by a leading financial institution found that 63% of investors are adopting a more cautious approach amid market volatility. This behavior reflects a broader trend, as many are reassessing their portfolios in light of economic uncertainty.
In summary, both Nifty and Bank Nifty are at critical junctions. Keeping an eye on support and resistance levels will be crucial in the days to come. For those looking to navigate this volatile market, staying informed and cautious is key.
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