Mumbai, May 3 (IANS) India’s benchmark indices Nifty and Sensex are expected to remain range-bound in the near term, with a slight bullish undertone in Nifty but continued caution in the broader market, according to experts on Sunday.
The Nifty began the week on a positive note with a modest gap-up and largely moved within a narrow range -- reflecting a consolidation phase.
Despite struggling for most of the week to hold above its short-term averages, the index eventually managed to close above its 20-day exponential moving average and also held above the crucial 100-week EMA level.
Analysts believe this indicates underlying strength and points to a potential shift towards a positive trend.
“The price action suggests consolidation with a mildly bullish bias. On the upside, resistance levels are placed at 24, 350 and 24, 600, ” an analyst stated.
“On the downside, support is seen at 23, 900 and 23, 550. A breakdown below 23, 500 could result in increased selling pressure, ” a market expert stated.
Given the current market structure, traders are advised to remain disciplined and adhere to strict stop-loss strategies amid ongoing volatility, they added.
In contrast, the Nifty Bank index underperformed during the week -- reflecting sustained selling pressure at higher levels.
“The Bank Nifty index opened the session on a flat note at 56, 162.60, reflecting initial indecision among market participants. It moved higher to register a weekly high of 56, 474.95 but failed to sustain at elevated levels, leading to a subsequent correction, ” an analyst mentioned.
“In the near term, immediate downside support is placed in the 54, 350–53, 850 zone in case selling pressure re-emerges. On the upside, 55, 550 acts as immediate resistance, while 56, 200 stands as the next key supply zone, ” the analyst added.
Meanwhile, the Sensex is currently trading within a tight range, reflecting a cautious market environment.
“On the upside, 77, 500–78, 000 continues to act as an immediate resistance band, and a sustained move above this zone would be required to improve sentiment and extend the upmove toward 79, 000–80, 000 levels, ” an analyst said.
On the downside, 76, 300–76, 000 serves as immediate support, followed by a stronger base in the 75, 600–75, 300 range, which is expected to provide a cushion if selling pressure intensifies, they added.