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1. Consolidation Continues Amid Technical Crossroads
The Nifty 50 index remains trapped in a tight range, with traders adopting a cautious stance as the index hovers near the 25,000 psychological support level.
- Nifty oscillated between 25,144 and 24,918 last week, ending with a modest 0.72% decline
- Resistance zones: 25,150 to 25,400; Support zones: 24,750 to 24,380
- India VIX dropped to 11.39, signaling low volatility but potential complacency
2. Technical Indicators Signal Indecision
- RSI at 56.54 remains neutral, showing no divergence against price
- MACD stays above its signal line, suggesting latent bullish momentum
- Price action above 20-week and 50-week moving averages supports medium-term optimism
- However, failure to break above 25,350 keeps directional conviction weak
3. Sector Rotation and Relative Strength Trends
- Nifty Media, Metal, Midcap 100, Realty, and PSU Bank indices lead the pack
- Pharma and IT indices show improving momentum, while FMCG and Auto lag
- Traders advised to focus on stock-specific plays with stronger relative strength
4. What Lies Ahead?
- A decisive breakout above 25,350 could reignite bullish sentiment
- Sustained dip below 24,750 may trigger incremental weakness
- Until then, a selective, risk-managed approach remains prudent
Sources: Economic Times, Moneycontrol, Samco, Livemint, Investing.com, Outlook Business, ETMarkets, HDFC Securities, SBI Securities, Stocktwits India
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