The Indian equity benchmarks settled lower on Wednesday, with Nifty 50 ending 35.05 points or 0.13% lower at 26,142.10 and Sensex ending 137.16 points or 0.16% down at 85,387.68. During the day both benchmarks had risen 0.20%.
“Nifty continues to form back-to-back small-bodied candles, indicating a pause in momentum as traders prefer to keep positions light ahead of the holiday”, stated Rajesh Bhosale, Equity Technical Analyst, Angel One.
Amid the ebbs and flows of the market and despite a brief downward tick, some analysts expect Nifty to retest record highs, and even touch a fresh milestone.
“We continue to expect Nifty to retest all-time highs and potentially create a fresh milestone in the near term”, Bhosale added.
He advised traders to stay focused on select themes and stock-specific opportunities that continue to exhibit relative strength.
Therefore, resistance level for the index as per analysts lie between 26300 – 26350, whereas on the downside support is seen at 26,050 – 26,000.
On the other hand, Bajaj Broking Research expects the consolidation phase to continue.
“Nifty in the last 4 weeks is seen consolidating in the range of 26,300-25,700. We expect the index to extend the same, and only a move above 26,300 will be instrumental in unlocking incremental upside potential towards the 26,500 area”, the brokerage stated.
