Nifty Nears Crucial Support Levels: SEBI RAs Warn Of 'Sell On Rise' Sentiment

The Nifty remained in sell-off mode for the third straight session and ended below 24,700 on Monday.

SEBI-registered analyst Mayank Singh Chandel noted that a bearish candle with an upper wick was formed on the daily chart, highlighting selling pressure at higher levels and a clear “sell on rise” market mood. 

Technically, the index is now inching closer to its 100-day Exponential Moving Average (EMA) at 24,580, which will act as the next key support, followed by the crucial level of 24,500, also aligning with June’s swing low, he added. Momentum remains weak as the Relative Strength Index (RSI) has slipped below the 40 mark, signaling further downside risk in the near term. 

Chandel identified immediate support at Monday’s low of 24,646, followed by 24,580 and 24,500. On the upside, 24,800–24,900 will act as the immediate resistance zone, followed by 25,000. Sustaining above this range is needed for any short-term recovery. 

He concluded that as long as the Nifty stays below 24,800, weakness is expected to persist. Any break below 24,580–24,500 could trigger a sharper decline.

Analyst Dipak Takodara noted that Nifty’s breakdown below 24,750–24,718 has shifted this zone into immediate resistance. On the downside, the next support levels are 24,467–24,377, followed by 24,200–24,164. A failure to hold 24,377 could drag the index closer to 24,200–24,164 levels.  

According to him, the immediate challenge for bulls will be to reclaim 24,750 on a closing basis. Failure to do so could open further downside toward 24,467 or even deeper toward 24,200. For any pullback to gain traction, the Nifty index must close above 24,750.

Bharat Sharma of Stockace Financial Services noted that the index slipped below several support levels, as identified earlier. The 24,500–24,450 zone was identified as a critical support area on the downside. Within this zone, both the 100-day EMA and the 24,580 level are expected to serve as additional support points, he added.

On the upside, a positional reversal should only be considered if there are clear signs of a turnaround; however, he believed it is still too early to make a definitive analysis on that. For intraday trade on Tuesday, Sharma identified immediate support at 24,650, which, if breached, can lead to 24,580, 24,500, and then 24,450. On the other hand, immediate resistance is seen at 20 EMA or the 24,720–24,730 range, followed by 24,760, 24,820, and 24,880, respectively.

Ashish Kyal noted that the Nifty index has been failing to show any pullback over the past few days, not closing above the previous day's high and it also broke 24,728 levels. He added that the market is currently in a  wave "d" corrective structure, with upside hurdle at 24,820 and support at 24,470.

Analyst Pradeep Carpenter also reiterated that the current market structure reflects a nervous consolidation phase, with clear resistance at higher levels and no major support breakdown yet. Sector rotation is not offering comfort, and traders are advised to maintain a stock-specific and risk-managed approach. Until the Nifty decisively crosses 24,800 or the Bank Nifty breaks past 57,000, the broader trend is likely to remain under pressure. 

Key resistance zones are marked at 24,830, 24,981, and 25,073. On the downside, support is expected at 24,587, 24,495, and 24,344. The immediate trading range is defined between 24,709 and 24,767. A move outside this band may determine the day’s direction. Carpenter said outlook remains sideways to negative on the Nifty.

His advised strategy: Sell on breakdown below 24,709 with a tight stop-loss. A sustained move above 24,767 may provide temporary relief, but upside remains capped near 24,800 due to strong call writing. 

For the Bank Nifty, he identified resistance levels at 56,442, 56,800, and 57,023. Support zones can be seen around 55,861, 55,638, and 55,280. He said that short trades may be considered below 56,151, while fresh buying should only be considered if the price sustains above 56,287.

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