Banking Index Corrects, 20-DEMA Holds - Religare Broking Ltd
Nifty
* Nifty witnessed profit-taking on Tuesday after Monday's sharp rally, with benchmark indices ending lower amid weakness in heavyweight stocks and caution surrounding the new closing auction mechanism.
* Technically, the Nifty witnessed profit-taking after Monday's sharp up move but continues to hold above the key support zone of 24,350–24,400, which remains crucial for sustaining the prevailing positive bias.
* On the upside, the 24,800–25,000 zone continues to be the immediate resistance area, and a decisive move above this band could pave the way for an extension towards 25,200.
* We continue to advocate a "buy-on-dips" strategy, preferring relatively stronger sectors such as banking, financials, auto, and select metal stocks, while maintaining disciplined risk management.
BANK NIFTY
* The banking index witnessed profit booking after two consecutive sessions of gains, strongly supported by 20-DEMA at current levels.
* Despite a positive gap opening, persistent selling pressure kept the index under pressure throughout the session.
* PNB and Canara Bank gained some momentum, while other constituents were closed in the red where Federal Bank and Axis Bank led the declines.
* Immediate resistance near 58,600 and crucial support around 57,000.
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