Mumbai, May 3 India’s benchmark indices Nifty and Sensex are expected to remain range-bound in the near term, with a slight bullish undertone in Nifty but continued caution in the broader market, according to experts on Sunday.
The Nifty began the week on a positive note with a modest gap-up and largely moved within a narrow range -- reflecting a consolidation phase.
Despite struggling for most of the week to hold above its short-term averages, the index eventually managed to close above its 20-day exponential moving average and also held above the crucial 100-week EMA level.
Analysts believe this indicates underlying strength and points to a potential shift towards a positive trend.
“The price action suggests consolidation with a mildly bullish bias. On the upside, resistance levels are placed at 24,350 and 24,600,” an analyst stated.
“On the downside, support is seen at 23,900 and 23,550. A breakdown below 23,500 could result in increased selling pressure,” a market expert stated.
Given the current market structure, traders are advised to remain disciplined and adhere to strict stop-loss strategies amid ongoing volatility, they added.
In contrast, the Nifty Bank index underperformed during the week -- reflecting sustained selling pressure at higher levels.
“The Bank Nifty index opened the session on a flat note at 56,162.60, reflecting initial indecision among market participants. It moved higher to register a weekly high of 56,474.95 but failed to sustain at elevated levels, leading to a subsequent correction,” an analyst mentioned.
“In the near term, immediate downside support is placed in the 54,350–53,850 zone in case selling pressure re-emerges. On the upside, 55,550 acts as immediate resistance, while 56,200 stands as the next key supply zone,” the analyst added.
Meanwhile, the Sensex is currently trading within a tight range, reflecting a cautious market environment.
“On the upside, 77,500–78,000 continues to act as an immediate resistance band, and a sustained move above this zone would be required to improve sentiment and extend the upmove toward 79,000–80,000 levels,” an analyst said.
On the downside, 76,300–76,000 serves as immediate support, followed by a stronger base in the 75,600–75,300 range, which is expected to provide a cushion if selling pressure intensifies, they added.
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