Dalal Street Week Ahead: Weak technical setup to keep bulls under pressure
The technical structure has deteriorated following the violation of the important 23,900–24,000 support zone. This area had provided support during the recent consolidation but will now be expected to act as resistance on any pullback. More importantly, Nifty has slipped below its 100-week moving average, currently placed at 24,401, and remains below the 50-week MA at 24,673.
The week ahead for the Indian stock market, or Dalal Street, is expected to be cautious and defensive due to a weak technical setup. The Nifty index, which fell by 2.09% on the week, ended the week at 23,398.10, just above its lowest level. The index's trading range widened to 658.60 points, and volatility rose as the India VIX increased by 15.07% to 12.29.
Nifty has slipped below both its 100-week and 50-week moving averages, indicating a negative technical structure. Unless Nifty can reclaim the 23,900-24,000 support zone, it is unlikely to see any significant upward movement. The coming week will resume on Tuesday, September 15, following a trading holiday on Monday for Ganesh Chaturthi.
The key resistance levels to watch are 23,600 and 23,850, while support may be found at 23,230 and 23,000. Analysts are cautious about a potential trend reversal until Nifty first recaptures the 23,900-24,000 support levels.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
