Nifty Trades In Tight Range On Daily And Weekly Charts, Nears Breakout
Nifty consolidates near breakout zone in tight trading range.
The Nifty50 index ended higher on Friday but continued to face strong resistance in the 23,830–23,860 zone, highlighting persistent hesitation at higher levels. The benchmark index closed at 23,700-plus levels, gaining 64.60 points or 0.27%, after retreating more than 100 points from the day’s high. Banking and financial stocks provided key support during the session, helping the market stay in positive territory despite volatility.
Market participants noted that the index remains in a consolidation phase, with both daily and weekly charts showing inside candle formations. This pattern indicates that trading ranges are tightening, suggesting reduced momentum and increasing indecision among traders. Analysts say the market is now awaiting a decisive trigger that could determine the next directional move.
On the daily chart, Friday’s price action formed a small-bodied candle with a long upper shadow, reflecting selling pressure near the resistance band of 23,830–23,860. The index also traded within the previous session’s range, reinforcing the formation of an inside candle. The 165-point trading range marked the narrowest movement in the last 10 sessions, underscoring subdued volatility.
Also Read: Nifty Faces Crucial Resistance Near 24,350 Ahead Of Monday Trading Session
A similar structure was observed on the weekly chart, where the entire week’s movement remained confined within the previous week’s range. This type of price behaviour typically signals indecision before a potential breakout. Market experts suggest that sustained movement above 23,860 could pave the way for a rally toward 24,000 and 24,130, while immediate support is placed at 23,450.
Technical indicators suggest that the ongoing consolidation has now extended for around nine sessions, following an earlier 12-session range-bound phase in April–May. The index continues to form higher lows while repeatedly facing resistance near similar highs, creating an ascending triangle pattern that often precedes a breakout.
Separately, Mahindra Lifespace Developers has emerged as a stock to watch after breaking out of a triangular pattern that had been forming over several weeks. The stock is also nearing a neckline breakout from a double-bottom formation around the Rs 348–349 zone. It has moved above its short-term moving averages, while momentum indicators such as MACD suggest improving strength, supported by a bullish weekly candlestick pattern.
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