Nifty Sideways in 25,255-25,300; Financials Lead

Pre-open cues are slightly soft, with GIFT Nifty around 50 to 60 points lower. Brent crude has recovered from sub-$90 levels to around $95, which could influence the opening. On Thursday, Nifty opened near the 25,255 pivot, moved up towards 25,425, the previous day’s high, and then came back to hover around the pivot. It ended near 25,275, inside the 25,255-25,300 pivot zone, so the sharp run-up has turned into a sideways phase. The 15-minute RSI at about 54 is near the midline, which shows neutral momentum after the overbought phase. Resistance levels are 25,300, 25,410 and 25,510, and supports are 25,165 and 25,030. The broader range is 25,410 on the upside and 25,165 on the downside, and a break on either side would give direction. Sustained trade above 25,410 would bring the 26,000 zone into view. The top Nifty gainers yesterday were from the financial space: HDFCLIFE (+4.23%), Shriram Finance (+3.58%), Bajaj Finance (+3.36%) and SBI Life (+2.97%). They are worth observing today. The first half-hour of trade will be important. After a sharp run-up, a sideways phase around a pivot is common; the range boundaries show where direction is likely to emerge. Disclaimer: This is for educational purposes only and is not investment advice. Please consult your financial advisor before making any investment decisions. SEBI Registered Research Analyst — INH000025212.