Ahead of Market: 10 things that will decide stock action on Monday
The Nifty 50 index closed 0.22% lower at 21,731 points, while the Sensex settled 0.23% down at 72,240 points — both only slightly shy of the record highs hit in the previous session.
The Nifty has jumped over 20% in 2023 and the Sensex has risen nearly 19% to log their best years since 2021 and second-best since 2017, fuelled by sustained domestic mutual fund inflows, the return of foreign buying, better-than-expected macroeconomic growth and steady corporate earnings.
Here's how analysts read the market pulse:
«Immediate support is observed around 21600, followed by 21500, while strong support lies around the week's low around the 21300 mark. Although prices are in uncharted territory with no prominent resistance visible, 21850 followed by 22000 presents an immediate hurdle, considering the overbought conditions.
Traders should monitor these levels and adjust their strategies accordingly,» said Rajesh Bhosale, Technical Analyst at Angel One.
Ajit Mishra, SVP — Technical Research, Religare Broking, said, «We may see further consolidation in the index and it would be healthy after the recent surge. We expect Nifty to hold the 21,300-21,500 zone in case of a dip during consolidation and reiterate our positional target of 22,150 level.
