The benchmark indices closed in the green with the Nifty closing above 19,600 with the push from last-hour buying. The NSE Nifty 50 ended up 0.18% to settle at 19,611.05, while the BSE Sensex added 100 points to shut shop at 65,880.52. Nifty Next 50 and Nifty Midcap 50 led the gains among the broader indices.
Tata Consumable Products, Divi’s Labs, Bharti Airtel, HDFC Bank and Brittania Industries led the gains on the NSE Nifty 50 while the laggards included Tata Steel, Hindlaco Industries, Axis Bank, NTPC and IndusInd Bank.
Commenting on intra-day trade, Shrikant Chouhan, Head of Research (Retail), Kotak Securities, “Despite the continuing upward momentum, the market is lacking depth as investors’ confidence is a bit shaken due to rising global uncertainty. A fresh rise in US bond yields and the dollar index is creating uncertainty in global markets and in India, and this has once again led to offloading of local shares by the FIIs. Technically, the Nifty took support near 19,500 and bounced back sharply.”
Chouhan added that “A promising intraday reversal formation is indicating a strong possibility of further uptrend from the current levels. For the trend-following traders now, 19,550 would be the trend-decider level, above which the index could rally till 19,650-19,700. On the flip side, fresh selling pressure could be seen after the dismissal of 19,550, and below the same it could slip till 19,500-19,460.”
Though the markets started on a weak note as a result of weak global cues and crude above $90, “Nevertheless, the resilience of the domestic markets shone through as investors placed their bets on an improved outlook, ultimately helping the market recover from the initial shock,” said Vinod Nair, Head of Research at Geojit Financial Services.
Nifty Technical Outlook
“Nifty exhibited volatility but achieved a significant milestone by closing above 19600 for the first time in a while. The bullish crossover of the 21EMA and 55EMA has persisted, signaling an ongoing bullish trend. Additionally, a bullish crossover in the RSI highlights the index’s strength. In the short term, Nifty may target levels of 19,750 or even 20,000. On the downside, key support rests at 19,440, and the market is expected to maintain a buy-on-dips strategy as long as this support level holds,” said Rupak De, Senior Technical analyst at LKP Securities.
Bank Nifty support seen at 44,000, resistance at 44,600
“The banking sector witnessed choppy trading as traders struggled to find direction, resulting in heightened volatility for the Bank Nifty index. The prevailing sentiment leans towards a negative-to-sideways bias, with the index closing below a crucial moving average. The RSI is on the verge of forming a bearish crossover, indicating potential weakness. In the short term, the index is expected to decline towards 44,000, with resistance at 44,600. Sustained trading above this level could propel the index towards 45,000 and beyond. Selling on rallies seems to be the favored strategy for traders in the Bank Nifty unless the index provides a clear and decisive breakout above the 45,000 level,” said Rupak De, Senior Technical analyst at LKP Securities.