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

Nifty Outlook: After witnessing a sharp selloff of around 1.5 per cent in the previous session, the Indian stock market benchmark recorded a strong recovery on Friday, November 29. bse sensex And nifty 50 Shares rose about 1 per cent each in intraday trade, driven by buying in Reliance Industries and Bharti Airtel.

Sensex rose 805 points to hit an intraday high of 79,848.76, while Nifty 50 rose 230 points to 24,144.45. Broader market indices, including BSE Midcap and Smallcap indices, rose about 0.5 per cent, indicating improving market sentiment. Meanwhile, total market capitalization Number of BSE-listed companies increased has to reach Rs 3 lakh crore from 446 lakh crores Rs 443 lakh crore in the last session.

Market sentiment and expert outlook

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

VK Vijayakumar, chief investment strategist, Geojit Financial Services, highlighted unregulated FII activity as a major concern. “The recent volatility in FII flows is surprising. Yesterday’s heavy selling after a few days of buying 11,756 crores, which is difficult to explain. Is this a one-time event, or are there more to come? Investors should adopt a wait and see attitude.

He also suggested that the ‘buy-on-dips’ strategy may not yield immediate returns but could benefit investors in the medium to long term. “In large-cap stocks financial position, itCapital goods and telecom are ideal for accumulation with a long-term perspective,” Vijayakumar said.

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

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

“As long as Nifty remains below 24,500, any upward move can be seen as an opportunity for traders to exit long positions,” he said.

Anupam Rungta, Market Analyst, Share Market

Rungta said that Nifty 50 made a comeback of 11 percent after reaching the peak of 26,127. The index found strong support at 23,327 and reclaimed the 200-day moving average of 23,590 hit on November 22, Rungta said.

“Since then the index has gained 1.8 per cent and broken resistance at 23,900. To sustain the rally, Nifty will have to test key resistance levels at 24,500 and 24,800, with 23,900 now acting as key support,” Roongta explained.

Trivesh, COO, Tradejini

Trivesh took a more cautious approach pointing to mixed market signals and global headwinds. “While Nifty has shown resilience, uneven corporate earnings and downward revision gross domestic product Forecasts can limit profits. We expect the index to remain in the 23,500-23,700 resistance zone.

He also said global factors, including policy changes under the new Trump administration and a tough stance on China, could impact market sentiment. Additionally, upcoming OPEC+ The dynamics of the meeting could change if the group tightens production quotas to combat supply surpluses.

“It is time to prioritize disciplined, long-term strategies rather than hoping for sharp rallies,” advised Trivesh.

The rally in Indian equity markets on Friday provided some relief after recent losses, but volatility is expected to remain in the near term. While technical indicators suggest the possibility of further gains, experts suggest market participants should remain cautious amid global and domestic headwinds. They further recommend focusing on quality stocks in large-cap sectors and adopting a long-term investment approach to deal with the uncertain market environment.

Disclaimer: The views and recommendations given 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 decision.