The Nifty 50 index is pausing after recent gains, with traders watching crucial resistance levels around 25,000 as signs of continued consolidation emerge amid cautious optimism.
The Nifty 50 is likely to start Monday in a holding pattern, with analysts saying the market is pausing after a recent advance rather than losing momentum. Technical commentators are watching 25,000 as the key cap on gains, even as they argue the broader trend remains constructive because the index is still trading above major moving averages. According to Nandish Shah of HDFC Securities, the index has spent the last three sessions moving between 24,400 and 24,700, with a mix of lower highs and higher lows that points to consolidation rather than weakness.
Shah said 24,770 is the first level traders need to clear before the market can make another run at 25,000, a threshold that carries obvious psychological weight and may attract selling interest. Moneycontrol has also reported that market participants see 25,000 as an important area after a series of sessions in which the index has repeatedly stalled near that mark. On the downside, analysts are looking at the 24,430-24,380 band as the nearest support if profit-taking deepens.
Sudeep Shah of SBI Securities said the quieter price action has not damaged the larger setup. In his view, the index remains above its short-term and long-term moving averages, while momentum indicators have flattened, suggesting a temporary lull after the earlier rally. Other recent market commentary has pointed to the same pattern: consolidation following a sharp rise, with traders keeping positions light and waiting for a clearer breakout. That backdrop has left 24,700 to 24,800 as a zone traders are watching closely for confirmation of strength.
The banking index has shown a similar shape. Bank Nifty ended Friday up 0.56% above 58,000 after moving in a narrow range, and Shah said the chart still looks constructive even if momentum is cooling. He sees 58,500 to 58,600 as the immediate resistance band, with 59,100 and then 59,600 possible if the index breaks higher. Support is seen in the 57,600 to 57,500 area around the 290-day exponential moving average, a level analysts say should help preserve the broader uptrend if the market pulls back.
Disclaimer: This article is intended to inform and educate, not to recommend or endorse any financial product, investment or strategy. Please consider your own financial circumstances and seek professional advice where appropriate before making financial decisions.
