Aditya Gaggar, director of Progressive Shares notes that a range of 23,970-24,400 is a make or break for Nifty, and a breakout on either side will open the door for a further 300-400 points. The same observation was also seen in BankNifty with a range of 49,730-50,730.
"Some stocks look strong on a technical front Balrampur Chini and United Spirits, HUL, and ITC. The media segment shows stock-specific buying (Network18 & SunTV). The pharma sector has extended its strong uptrend and breakout in a few counters are indicating further rally in the sector (Alkem Labs, IPCA Labs, and Mankind Pharma)", he continued.
All broad market indices dipped during early trade, about 1% each, with the exception of India VIX, which inched up about 5.57%. Only consumer durables and realty saw shoots of greens during opening trade today, while media dipped over 1%.
Shrikant Chouhan, Head Equity Research, Kotak Securities, highlights that "benchmark indices experienced profit booking at higher levels last week. Nifty closed 1.42% down, while Sensex closed 1,260 points lower. The metal index declined by nearly 3%, while healthcare and pharma stocks held positive momentum despite weak market sentiment. The market slipped below the 20-day SMA (simple moving average) during the week but recovered some losses in the second half and eventually closed at 24,367/79,722.
"For the week, 23,800/78,000 and 24,500/80,100 are expected to be the major support and resistance levels. Above 24,500/80,100, the market may continue the pullback formation until 24,700/80,600 or even 24,900/81,200. On the other hand, below 24,100/78,600, selling pressure may increase, potentially leading to a drop to the 50-day SMA and 23,800/78,000", he said.
"The suggested strategy is to reduce long positions until the market crosses 24,500 levels. Considering trading bets above 24,500 is advisable as there may be a technical breakout that could push the market towards 24,900 levels. Below 23,800, it could fall to 23,300 levels", continued Chouhan.