Bulls Take A Breather: SEBI RAs Track Crucial Levels Around 25,500 For Next Nifty Move

Indian equity markets took a breather on Monday, with the Nifty holding the 25,500 mark, as investors turned cautious ahead of a crucial week featuring significant U.S. economic data releases and the expiration of the 90-day extended tariff deadline.

Bharat Sharma of Stockace Financial Services noted that the Nifty index experienced a healthy retracement on Monday, following a sustained rally over the past few sessions. But he added that this correction was necessary and not indicative of a shift in the market sentiment. 

Positionally, strong support levels have been identified at 25,400 and 25,200, respectively. For intraday trading, he noted that the chart indicates a simple downtrend, with a clear sign of an SR (Support-Resistance) flip acting as support. 

Sharma pegged immediate support at 25,470, which, if breached, could trigger a further decline to 25,420, 25,400, or 25,300. On the upside, he sees immediate resistance at 25,540, which coincides with the SR flip, a downward trendline, and the 20- and 50-day Exponential Moving Average (EMA) on a 15-minute timeframe. 

If the Nifty index breaks this level, the next upside targets are seen at 25,580-25,600, with a potential to rally to 25,650-25,700 and beyond. With the start of a new month, there is also the possibility of increased SIP (Systematic Investment Plan) inflows, which could provide additional support to the market.

Analyst Ashish Kyal noted that the Nifty index is poised for upside if it closes above 25,570 on the 15-minute chart. If it breaches this level, it can rally further to 25,630-25,650. 

On the downside, Kyal said that it is crucial for Nifty to hold 25,460 on an hourly closing basis. He also added that a window for potential buying occurs near 9.30 am, but confirmation through price action is required. The opening hour candle will be crucial for both intraday and positional traders, as it sets the tone for trading on Tuesday.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

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