Traders stay guarded as Nifty turns range-bound, support at 25,100 zone

The Nifty index is currently facing a range-bound trend, struggling to maintain levels above 26,000 after a recent pullback. Analysts indicate that immediate support is positioned between 25,100 and 25,300, while resistance is seen in the 25,700 to 26,000 range. The recent trading activity has highlighted a weakening market breadth, predominantly influenced by declines in the IT sector, suggesting a cautious outlook for traders. The technical indicators imply a potential downside, with a critical support level identified around the 200-day moving average at 25,292. A breach below this level could further diminish market sentiment and lead to a drop towards the 25,100 region. Traders are advised to adopt a wait-and-watch strategy, considering potential contra trades near the support levels. Additionally, specific stock picks such as Bajaj Finance and Torrent Pharma are recommended for potential buying opportunities, reflecting a more nuanced trading strategy in the current market environment.