Dharmesh Shah, from ICICI Direct, said, “The sharp move from 24,600 to 26,300 in recent sessions has given way to consolidation in the 25,200–26,000 range. We expect strong support around 25,200, which coincides with the 200-day moving average and the 61% retracement of the previous rally.”
Shah added that market breadth provides a more encouraging picture. “The percentage of stocks trading above their 50-day moving average has improved from 20% in February to around 45% now. On the surface, Nifty looks weak, but the Bank Nifty is clearly outperforming.”
He further noted, “For now, 25,200 remains a strong support, and we should eventually look for a target around 26,000 in March. Stock-specific action is likely to continue during this consolidation phase.”
Analysts suggest investors maintain caution but focus on quality stocks as markets navigate this corrective period.
