“Look, Nifty is definitely trading below 25,300 on the spot is not a good sign, that was the last support and if you see the last short term low that we made recently it was around 25,327. So now Nifty is trading firmly below that number of 25,327 which was the recent low. And this confirms to me that yes, if we close below 25,300 today, a weekly close below that is clear to me will be a signal that there are more disadvantages.” is certainly there for the very short term.”According to him, a weekly close below this threshold would reinforce the bearish situation in the short term.
Bank Nifty joins weakness
Adding to the concerns is the weakness in banking stocks. Bank Nifty, which had been relatively resilient in recent sessions, fell below the 60,800 level for the first time during this phase of the correction.
“And most importantly, Bank Nifty, which has shown strength so far, is trading below 60,800 for the first time today. So, Bank Nifty’s place below 60,800 also tells me that the downward movement in Nifty will indeed be led by Bank Nifty and IT, which was already in pain, will continue the downward movement for Nifty.”
With IT stocks already under pressure, the broader market appears vulnerable to further downturn if financials continue to weaken.
Key support and resistance levels
From a technical point of view, the next major support for Nifty is in the 24,900–25,000 zone. For Bank Nifty, the long-term support is around 59,000.
“So for me, Nifty is a sell on any rise. Bank Nifty is clearly showing signs of more weakness now and any rise in the market should be used as a short position for short-term traders… So don’t take this falling knife. If you are a short-term trader, definitely wait and look for opportunities to sell on rise.”
He emphasized that traders should remain highly selective and focus on sector-specific and stock-specific opportunities rather than broad buying.
What should investors do?
While short-term traders are advised to use rallies to lighten positions or initiate shorts, the tone for long-term investors is somewhat different.
“But for long-term investors, take advantage of this opportunity to selectively buy into the right sectors and stocks.”
With the trading week ahead, it may take some time for decisive upside moves to materialize. For now, the technical setup suggests caution, discipline and a clear distinction between trading strategies and long-term investments.
With volatility returning, the market’s next directional signal could well depend on whether the Nifty manages to regain 25,300 – or confirms a deeper correction below.
#Shortterm #traders #remain #cautious #weakness #ahead #Rudramurthy