The Nifty is reaching a vital technical point as the benchmark index continues to hover around the 24000-mark. After going below the significant doorstep, the index is now testing an important support zone, keeping traders and investors concerned.
Paying heed to the same, Rajesh Palviya, Head of Technical and Derivatives Research at Axis Securities, told ET NOW that the 23,900 level remains a key support for the market’s expected direction. He also noted that as long as the index holds above the zone, the broader trend is likely to remain stable.
Palviya warned that if the index slumps below 23,900, it could invoke further weakness and increase the likelihood of a deeper correction. Thus, as a consequence, investors are expected to keenly watch the price action around this level to figure out the next move.
Market outlook and critical technical levels
Palviya noted the recent breakdown in the Nifty, explaining the technical picture.
“So again market has become volatile and Nifty has broken the important support area of 24,000 which was major put base concentration. Looking at the profit taking below 24,000 level is you know giving some sign of you know weakness in the market and maybe nifty may test 23,900 that’s the important and crucial at this juncture if at all nifty breaks below 23900 then we could see further more you know pressure in the market and uh nifty can slide further but till the time 23900 is intact market is trying to you know recover from the current level because this is the important level based on the putbased concentration almost we are hovering around 5day moving average support area.”
He identified immediate levels to watch:
“So 23950 is the important level to watch for for uh especially for intraday perspective. So if we able to recover about 24,000 level I think trend may you know again resume uh in the coming days but bank nifty is still holding the ground despite of volatility again bank nifty is holding above 57,500, 57,400 which are the important level to watch for if it’s hold these level I think bank nifty uh is likely to exhibit uh strength in the coming days and maybe we could see again you know pull back towards 58,000 to 58,000 200. So relatively bank nifty is looking more promising compared to the Nifty at this juncture.”
On stocks performing strongly, Palviya offered a bullish technical view on VA Tech Wabag.
“Wabag very strong buying action took place. If we look at the weekly uh chart, a very strong bullish candle is taking place in Wabag and now stock is uh approaching its previous high of December 2024. So I think any move beyond 1960 1970 may attract more buying action as there is a breakout on the long-term chart. So we could see further higher level towards 2,50 to 2100 for Wabag. So here one can hold the position and trail the stop loss now towards 1900 and we may see you know this stock can extend again towards 2,000 to 250 level.”
