Nifty 50 Technical Outlook: Key support and resistance levels to watch after 1% rally

Nifty Outlook: After witnessing a sharp sell-off of nearly 1.5 per cent in the previous session, Indian stock market benchmarks staged a robust recovery on Friday, November 29. The BSE Sensex and Nifty 50 climbed almost 1 per cent each in intraday trade, driven by buying in Reliance Industries and Bharti Airtel.

The Sensex surged 805 points, reaching an intraday high of 79,848.76, while the Nifty 50 rose 230 points to touch 24,144.45. Broader market indices, including the BSE Midcap and Smallcap indices, gained around 0.5 per cent each, signalling improved market sentiment. Meanwhile, the total market capitalization of BSE-listed companies increased by ₹3 lakh crore to reach ₹446 lakh crore from ₹443 lakh crore in the previous session.

Market Sentiment and Expert Outlook

Despite Friday’s recovery, experts remain cautious about the short-term market outlook due to persisting headwinds. The recent correction in Indian equities was largely driven by heavy selling by foreign institutional investors (FIIs), weak second-quarter earnings, and rising geopolitical tensions.

V K Vijayakumar, Chief Investment Strategist at Geojit Financial Services, highlighted the erratic FII activity as a key concern. “The recent volatility in FII flows is perplexing. A few days of buying have been followed by yesterday’s massive selling of ₹11,756 crore, which is difficult to explain. Is this a one-off event, or is there more to come? Investors should adopt a wait-and-watch approach,” he said.

He also suggested that a ‘buy-on-dips’ strategy might not yield immediate returns but could benefit medium to long-term investors. “Large-cap stocks in financials, IT, capital goods, and telecom are ideal for accumulation with a longer-term perspective,” Vijayakumar added.

Vishnu Kant Upadhyay, AVP – Research & Advisory, Master Capital

Upadhyay highlighted that the 24,300-24,400 zone is witnessing heavy call writing, indicating significant bearish efforts to defend these levels. “The 24,350 mark has emerged as a critical resistance level, with repeated failures to breach it in recent sessions,” he said.

“As long as Nifty remains below 24,500, any upward movement is likely to be seen as an opportunity for traders to exit long positions,” he added.

Anupam Roongta, Market Analyst, Share.Market

Roongta pointed out that Nifty 50 rebounded from an 11 per cent correction after hitting a peak of 26,127. The index found strong support at 23,327 and reclaimed its 200-day moving average of 23,590 on November 22, said Roongta.

“The index has since gained 1.8 per cent and broken resistance at 23,900. To sustain the rally, Nifty must test key resistance levels at 24,500 and 24,800, with 23,900 now acting as crucial support,” Roongta explained.

Trivesh, COO, Tradejini

Trivesh adopted a more cautious outlook, pointing to mixed market signals and global headwinds. “While the Nifty has shown resilience, uneven corporate earnings and downward revisions in GDP forecasts could limit gains. We expect the index to remain in the 23,500-23,700 resistance zone,” he said.

He also noted that global factors, including policy changes under the new Trump administration and a hawkish stance on China, could impact market sentiment. Additionally, the upcoming OPEC+ meeting could shift dynamics if the group tightens production quotas to counter supply surpluses.

“This is a time to prioritise disciplined, long-term strategies rather than expecting sharp rallies,” Trivesh advised.

Friday’s rebound in Indian equity markets offered some relief after recent losses, but volatility is expected to persist in the near term. While technical indicators suggest the potential for further gains, market participants must remain cautious amid global and domestic headwinds, suggest experts. They further recommend focusing on quality stocks in large-cap sectors and adopting a long-term investment approach to navigate the uncertain market environment.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.