The Indian stock market ended the week on a cautious note as the Nifty index struggled to break past the crucial 23,800 resistance level for the second consecutive session. Analysts noted a lack of strong momentum, with the index trading in a range-bound manner.
The India VIX, a measure of market volatility, closed at 17.91, down by 0.49% from the previous session. Rupak De, Senior Technical Analyst at LKP Securities, highlighted the indecisive trading pattern over the last few sessions, emphasizing the need for a decisive breakout for the next market move.
Meanwhile, Bajaj Broking pointed out the formation of a bearish candlestick pattern on the Nifty charts, indicating selling pressure at higher levels. The brokerage firm suggested that the index needs to move above the 23,800-23,900 range to signal a pause in the corrective trend.
“Overall, Friday’s session remained lackluster, with neither a breakout nor a breakdown visible on the charts.”
Rupak De, Senior Technical Analyst at LKP Securities
In terms of market activity, One 97 Communications (Paytm) led in turnover with Rs 996 crore, while Vodafone Idea was the most actively traded stock in volume terms with 4.79 crore shares. Additionally, 126 stocks hit their 52-week highs, reflecting selective buying interest.
On the international front, US markets closed in the green, buoyed by easing treasury yields, while European indices also ended higher. This global sentiment provided some support to the Indian market.
“Going ahead, index to extend the last seven sessions consolidation in the range of 23,200-23,900.”
Bajaj Broking
Background
The Indian stock market has been experiencing a phase of consolidation, with the Nifty index struggling to find a clear direction. This comes amid a backdrop of global uncertainties and domestic economic challenges.
Investors will be keenly observing the Nifty's movement in the coming sessions, particularly around the 23,800 resistance level. A decisive move could set the tone for the market's trajectory in the near term.
