Will Nifty hold above 23,600, or is more downside ahead?

StockEdge's Morning Market Analysis - 6th Feb - 2025

The Nifty lost 42 points ?? over the day to close at 23696. Yesterday, the markets saw a dip—it opened gap-up but then slipped, closing at the lows of the day. However, the advance-decline ratio on Nifty 500 was encouraging, and broader markets remained firm ??. Stock-specific action was observed in the markets, though FII figures were negative at ?1100+ Cr. On the bright side, Bank Nifty remained strong.

Technical Outlook

After a phenomenal 1000-point rise, the index just saw a pause. With the RBI policy lined up this weekend, some volatility can be expected ??.

> Resistance at 23800-850 due to trendline resistance

> The index has sustained above key moving averages, a positive sign

> MACD is near the zero line in buy mode

> RSI is positively placed

> Immediate support at 23500 - 23600 – dips should be used as buying opportunities, especially in strong stocks and sectors

Sectoral Insights

?? Bank Nifty has moved past the 200 & 55 EMA, displaying overall strength.

?? Nifty Auto Index is also showing relative strength, reinforcing a positive outlook.

?? Conclusion

One should remain stock-specific while monitoring the index movement. It may be best to wait until the RBI policy for clearer direction ??.

Nifty

Support: 23630, 23500

Resistance: 23850, 24000

Bank Nifty

Support: 49900, 49600

Resistance: 50450, 50700

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