NIFTY 50 started its uptrend in March 2020, following the sharp but short-lived COVID-19 fall, which drew in a large number of new and young investors to the market. This led to a nonstop rally that continued until October 2021. The index made a high of 18,604 on October 19, 2021, which was only broken once in December of 2022, but later saw a sharp fall from that level.
The range was only broken after 21 months from the initial fall. During this period, the index saw a decline to a low of 15,183, a fall of 18.38 percent from its peak. It was only in July 2023 that NIFTY finally broke above its previous high.
Since breaking the high in July of 2023, Nifty gave a non-stop rally with some hiccups, like the 4th June 2024 Election fall, where it saw an intraday fall of 8.52 percent. The NIFTY 50 recently made a high of 26,277 in September 2024. Following this peak, the index witnessed a significant correction, declining by 4,534 points, which translates to a drop of approximately 17.25 percent from its high.
Since making the recent low, which was similar to the 21-month consolidation and fall, Nifty has sharply recovered by 3,373 points or 15.51 percent to trade at 24,963. After the swift rally that the Nifty 50 has shown. It is important to know the major support and resistance levels of the Nifty 50 Index.
Only recently Nifty 50 has broken out of the resistance level that was from 24,750 to 24,800 and this resistance level is now an immediate support level; however, if the new support level is retested Nifty could retrace to its Next support level that is from 24,400 to 24,300 as Nifty had take over 12 days to break this resistance level. This change of support to resistance and resistance to support is called the change in polarity principle.
On the downside, major support levels are from 23,750 levels to 23,650 levels. On the Upside Major Levels for the Index are from 25,125 levels to 25,200 levels. If this major resistance level is broken, Nifty 50 could retest its previous all-time High.
The NIFTY 50 index includes 50 major companies across key sectors of the Indian economy. Some of its top constituents are Reliance Industries, HDFC Bank, ICICI Bank, Infosys, and TCS. Other significant names include Larsen & Toubro, ITC, Hindustan Unilever, Bharti Airtel, and State Bank of India. These large-cap companies have a strong impact on the index and reflect the overall market sentiment.
Written By Abhishek Das
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