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Nifty 50 above 25,000, holds key moving averages: Is Buy-On-Dips right strategy? Here's what stock market experts say

By · Published by Everything Blog

In short

The benchmark Nifty 50 retreated to 25,144.30 on Friday as domestic retail inflation climbed to 6.09%, while the Sensex dropped 318.56 points amid currency weakness. Even with the session's profit-booking, both gauges logged net gains over the five-day period, supported by solid credit growth. Analysts emphasize that the broader technical setup remains constructive, recommending buying on pullbacks while the market trades above pivotal moving averages.

Key points

  • Technical indicators show the Nifty 50 is holding its positive trend by remaining above c…: Technical indicators show the Nifty 50 is holding its positive trend by remaining above critical moving averages and 25,000.
  • Immediate upside resistance sits at 25,424, with a potential breakout opening paths towar…: Immediate upside resistance sits at 25,424, with a potential breakout opening paths toward 25,500 and 25,850.
  • Analysts view pullbacks as buying opportunities unless selling breaches the downside supp…: Analysts view pullbacks as buying opportunities unless selling breaches the downside support zones between 24,900 and 24,600.

Sources checked by our analysis pipeline: 1

Indian equity markets may have snapped their three-day winning streak on Friday, but the broader technical outlook remains constructive, according to market experts. With the Nifty 50 holding above the crucial 25,000 mark and key moving averages, analysts believe investors could consider buying on dips, provided important support levels remain intact.

The Sensex declined 318.56 points, or 0.39%, to settle at 81,592.45 on Friday. It fell as much as 622.26 points, or 0.75%, to an intraday low of 81,288.75. The Nifty 50 closed 155.05 points, or 0.61%, lower at 25,144.30. The decline snapped a three-session rally and marked the first major fall for both benchmark indices this month.

The sell-off followed the release of October retail inflation data, which showed consumer price inflation rising to 6.09% from 5.54% in September, breaching the Reserve Bank of India's upper tolerance threshold of 6%. The reading revived concerns about a potentially tighter monetary policy stance and a possible rate hike at the RBI's December meeting.

Dr Ravi Singh, Chief Research Officer at Master Capital Services, said Indian equity benchmarks extended their gains for…

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