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Nifty 50 eyes consolidation after sharp fall
27 Sep
Summary
- Nifty shows signs of absorbing selling pressure after a recent correction.
- Key resistance for Nifty stands at 23,300 and 23,600 levels.
- Bank Nifty maintains consolidation, with 55,400 a crucial support level.
The Nifty 50 index is showing signs of potential consolidation after a recent correction. Technical indicators suggest that selling pressure is being absorbed and lower levels are being rejected. Market analysts point to a 'High Wave candle' formation following a bearish candle as an indicator of this trend.
However, the broader technical structure remains cautious. Key resistance zones for the Nifty are identified at 23,300 and 23,600. A sustained move above 23,600 would be necessary to shift the near-term bias from 'sell on rallies' to neutral. Immediate downside support is seen around 23,000, with a more critical trendline support at 22,700.
In parallel, the Bank Nifty is trading within a broad consolidation range, having ended higher recently. It has maintained levels above 55,400 and attempted to move towards 55,800. Immediate resistance is expected between 55,700-55,800. A breach above 56,000 is required for near-term stabilization, while failure to hold 55,400 could lead to a decline towards 55,000-54,800.
