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The benchmark indices continued to show weak momentum today. The Nifty closed 75 points lower, while the Sensex dropped by 166 points. Most leading sectoral indices experienced intraday profit booking at higher levels, with the Pharma Index suffering the most, losing 2 percent.
From a technical perspective, the market is still maintaining a lower top. The daily charts have formed a small bearish candle, which indicates a largely negative outlook.
We believe that while the short-term market outlook remains weak, it is also oversold. On the downside, the support zone is identified at 24,450, while the 24,750 level will serve as a crucial resistance area for the bulls. If the market moves above 24,750, a pullback is likely to continue up to the 24,850–24,900 range. Conversely, a decline below 24,450 could push the market down to the 24,350–24,150 range.
The recommended strategy is to consider buying select stocks if the market dips to 24350-24150 levels. For traders, it is advisable to buy Nifty if it forms a bullish reversal formation on hourly charts while selling is advisable if it closes below 24450 after an hour of trading with a stop loss at day’s highest levels.
Bank Nifty is expected to extend in the range to 55000 and 55500.

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