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Chartist Talks: Nifty likely to trade between 24,400–25,200 this week, says JM Financial's Rahul Sharma
- 23 Jun 2025
- JM Financial Services
Rahul Sharma is the Director, Head - Technical & Derivative Research at JM Financial Services
Technical charts suggests that while the overall trend in Bank Nifty remains sideways to bullish, a period of consolidation over the next few sessions is likely. Key support levels to watch are 55,000 and 54,400, said Rahul Sharma of JM Financial.
The Nifty 50 is likely to stay confined within its six-week trading band of 24,400 to 25,200 this week, according to Rahul Sharma, Director and Head of Technical & Derivative Research at JM Financial Services. He attributes this cautious stance to weakening market breadth, as he shared in a conversation with Moneycontrol. Here are the edited excerpts
Do you strongly believe the broad range of 24,400–25,200, set over the last six weeks, will be breached by the Nifty 50 in current week?
The Nifty 50 is expected to remain within its six-week trading range of 24,400-25,200 in the current week. While brief intraday moves above 25,200 are possible, a sustained breakout is not anticipated.
This cautious outlook is primarily due to weakening market breadth. The number of Nifty constituents trading below their 20-day Simple Moving Average has significantly increased:
April 28th: 4 stocks out of 50
May 15th: 9 stocks
May 26th: 11 stocks
Currently: 21 stocks
For a definitive close above 25,200, a broader improvement in market breadth is crucial.
Do you think the Bank Nifty is likely to break out of its consolidation phase to the upside soon?
The Bank Nifty is displaying greater relative strength compared to the Nifty 50, having already surpassed its September 26, 2024 high. However, after its recent robust rally, further consolidation is anticipated before a definitive breakout above the 57,050 level.
Technical charts reveal a negative divergence with the momentum indicator on the daily timeframe. This suggests that while the overall trend remains sideways to bullish, a period of consolidation over the next few sessions is likely. Key support levels to watch are 55,000 and 54,400.