Last week, it was indicated that if Nifty could cross and close above the resistance zone of 25,818, it would open up possibilities for an upward reversal. However, if it lost the 25,585 level on a closing basis, a test of the lower support levels at 25,318–25,070 would follow. Last Monday, Nifty breached 25,585 to close at 25,557. Subsequently, it closed at 25,232, then at 25,157 the next day, and finally ended the last trading day at 25,066. Let us look at the key levels to watch in the coming days.
On the downside, the first support levels to watch are 24,950 and 24,888. If the index can hold these levels without breaching them on a closing basis—and manage to close above 25,244—it would offer a glimmer of hope for the bulls. To tighten their grip on the contest, the bulls must, at the very least, sustain a close above 25,163. If this is not achieved and the 24,888 level is lost, the next key support levels to watch are 24,587–24,404. Following that, the 24,337–24,164–23,935 support levels will become critical.
Last week, the Dollar Index failed to cross the resistance level of 99.41 and has retreated to the 97.40 level. The levels to watch next are 96.97 and 95.33. The Indian Rupee closed last week at 91.86. By crossing the previous target of 91.82 on a closing basis, it has opened up new targets at 92.48–94.10. However, the resistance level of 92.01 needs to be watched in the interim.
Key factors likely to influence the market in the coming days include this month’s settlement scheduled for Tuesday, the upcoming Free Trade Agreement with the European Union, a potential settlement regarding tariffs with the US, and concerns over possible American intervention in Iran. For long-term investors, the current market conditions can be utilized as an opportunity to increase investments in well-performing companies.