Technically, a small candle on the daily chart and non-directional activity on the intraday chart indicate indecision between the bulls and bears, said Shrikant Chouhan, Head Equity Research, Kotak Securities.
“We believe 25,500/83500 would act as an immediate breakout zone for traders. Above this level, the market could rise towards 25,600/83700–25,670/84000. On the other side, below 25,400/83250, we may see a quick intraday correction towards 25,300/83000. Further weakness may continue, potentially dragging the market towards 25,225/82800. The current market pattern is non-directional; hence, level-based trading would be the ideal strategy for day traders.”
“For Bank Nifty, the 20-day SMA (Simple Moving Average) at 56,500 is a crucial level to watch out for. Below this, Bank Nifty could drop to 56,200-56,000. On the other hand, above 57,200, the outlook for reaching 57,500-57,800 remains bright,” he said.