India’s benchmark indices, the Nifty and Sensex, extended their losing streak for the second straight session, closing lower amid a broad-based sell-off. PSU banks, pharma, and metal stocks bore the brunt of the decline. The index once again encountered resistance around the 25,300 mark and witnessed selling pressure from that zone.
Nilesh Jain, Head – Technical and Derivatives Research Analyst at Centrum Broking said that Nifty formed a bearish candle on the daily chart, resembling a bearish engulfing pattern though the index found support near its 21-DMA at 25,060 and rebounded sharply to close above the 25,100 level. “At present, Nifty appears to be consolidating within a range of 25,000–25,300, which are acting as key support and resistance levels respectively. A decisive breakout above 25,300 would be required to trigger the next leg of the upward move,” Jain said.
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