India’s heartbeat index Nifty today ended its three-sessions losing streak to close positive, aided by strong gains in IT and pharma stocks. The trade was in a narrow range of 25,500–25,650 as the index felt resistance near the 50 EMA.
Commenting on the day’s action, Rupak De, Senior Technical Analyst at LKP Securities said that the index failed to sustain above the 21 EMA on a closing basis, which is a signal that weakness may persist over the next 1-2 sessions. “From a broader perspective, the index has taken support along the upper band of the falling channel on the daily timeframe, suggesting that the broader structure remains intact. However, a decisive move above 25,600 will be crucial to confirm the resumption of a directional upward move. Until then, the index is likely to continue its sideways consolidation phase,” De said.
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