Indian stock market: Nifty 50 near 24,500 level; can it cross 25,000 this month?

Stock market today: Indian benchmark indices, Sensex and Nifty, began Monday’s trading session on a positive note, buoyed by reduced global trade tensions, robust U.S. employment data, and sustained foreign investment. Leading the gains were major stocks such as HDFC Bank, ICICI Bank, and Reliance Industries.

The Nifty 50 index began the day at 24,419.50, which is 1,857.85 points below its all-time peak of 26,277.35. In the previous session, it had closed 1,930.65 points short of its record high of 26,277.35.

Last week, the Indian equity markets wrapped up the week on a flat-to-positive note, with the Nifty 50 managing to end slightly higher.

“Despite intraday optimism and initial momentum, the index witnessed significant profit booking at higher levels, particularly as it approached the crucial 24,500 mark. This resistance triggered a sharp reversal from intraday highs, leading to the formation of a spinning top candlestick pattern on the daily chart — a signal of indecision and potential reversal, especially near key resistance zones,” said brokerage firm Choice Broking in a note.

Key technical levels to watch out this week

From a technical perspective, the Nifty is currently trading in a narrow consolidation band between 24,500 and 24,000 levels.

On the Nifty 50 outlook, the brokerage firm said, “The index’s inability to sustain above 24,500 suggests selling pressure emerging from supply zones. A decisive close above 24,500 could open up further upside towards 24,800 and eventually the psychological 25,000 mark. However, until such a breakout occurs, the market is expected to trade with a sideways bias. On the downside, the immediate support lies near the 24,100–24,000 zone, where buying interest is expected to emerge, especially if broader sentiment remains stable.”

Meanwhile, Bank Nifty is the worst performing sector in Monday's trading session, down 0.49 per cent at 54846.30. The index closed at 55,115.35 last week, registering a 0.83% gain from the previous week's close.

On the Bank Nifty outlook, it added, "This week, the Bank Nifty index formed a small-bodied bullish candle with a long upper wick, supported by consistent trading volumes. This indicates rejection at higher levels and a possible pause in the current uptrend. The candlestick pattern reflects indecision among market participants and suggests a likely consolidation phase in the near term. A 'buy on dips'; strategy is recommended as long as the index holds above 53,500, with upside targets placed at 55,500 and 56,000.

The brokerage firm said that the index is likely to face significant resistance in the 55,500–56,000 range. If the index continues to move higher, ICICI Bank from the private banking sector is expected to support the uptrend. Similarly, in the public sector banking space, SBI is anticipated to show strength.

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