The Nifty 50 is navigating a critical phase, with resistance around the 23,300 zone and support near 23,047. According to analysts, a breakout above 23,300 could propel it to 23,500, while slipping below 23,047 may drag it to 22,900.
"Technically, on the daily chart, Nifty formed a small red candle, indicating uncertainty, with resistance around the 23,270-23,300 zone and support at 23,047. A break above 23,300 could push the index to 23,500, while sustaining below 23,047 may lead to 22,900-22,800," according to Hrishikesh Yedve, AVP technical and derivatives research at Asit C. Mehta Investment Interrmediates Ltd.
"However, the index is still placed below the 23,550 hurdle, where the 250-day simple moving average, or 250-DSMA, is located. As long as Nifty maintains below 23,550 levels, traders are advised to follow a sell-on-rise strategy," said Yedve.
"Technically, after a long correction from the last two days, the market is witnessing range-bound activity. On the higher side, 23,260 would be the key level to watch out for; above the same, the market could bounce back till 23,350-23,400," according to Shrikant Chouhan, head of equity research at Kotak Securities.
"On the other side, below 23,130, the selling pressure is likely to accelerate. Below the same, the market could retest the level of 23,000. Further downside may also continue, which could drag the index up to 22,950," Chouhan said.
Bank Nifty settled the day on a marginal positive note at 48,752. Yedve noted that technically, Bank Nifty on a daily scale has formed a small red candle, indicating uncertainty. However, the index is still placed below its 250-DSMA hurdle, which is around 49,900 levels.
"On the downside, 47,900 levels will act as immediate support for the index. As long as Bank Nifty maintains below 49,900 levels, traders are advised to follow a sell-on-rise strategy," Yedve said.
FII/DII Activity
Foreign portfolio investors remained net sellers of Indian equities for the ninth straight session on Wednesday, while domestic institutional investors have been buyers for 21 consecutive sessions.
FPIs sold stocks worth Rs 4,533.5 crore and domestic institutional investors bought stocks worth Rs 3,682.5 crore, according to provisional data from the National Stock Exchange.
Market Recap
The NSE Nifty 50 and BSE Sensex extend gains for the second straight session on Wednesday, ahead of the US CPI data. After a positive opening, the markets remained non-directional as traders were possibly waiting for a breakout on either side.
The Nifty 50 ended 37.15 points or 0.16%, higher at 23,213.20, and the Sensex ended 224.45 points or 0.29%, higher at 76,724.08. During the session, the Nifty 50 rose 0.51% to the day's high of 23,293.65. The Sensex rose 0.64% to 76,835.61.
Major Stocks In News
Azad Engineering: The company received order worth Rs 960 crore from Ge Vernova International, USA for supply of airfoils for advanced gas turbine engines.
Hitachi Energy: The company will consider raising funds by issuance of equity shares, QIP or other means.
GAIL: The company has signed settlement agreement with SEFE Marketing & Trading Singapore. SEFE Marketing to pay $285 million to company and withdraw arbitration proceedings in London.
RVNL: The company has received LoA worth Rs 3,622 crore from BSNL for development of middle mile network of Bharat Net.
Swiggy: The company has incorporated a wholly owned subsidiary, Swiggy Sports Pvt. Ltd.
Global Cues
Stocks in the Asia Pacific region advanced on Thursday taking overnight cues from Wall Street as easing inflation increased the prospects of rate cuts by the Federal Reserve.
Australia's S&P/ASX 200 opened higher with the benchmark index advancing by 1.41%, or 116 points, to 8,329 as of 6:38 a.m. Japan's Nikkei was up 220 points, or 0.52% at 38,687.
Future contracts in Mainland China pointed to a cautious start on Thursday. The benchmark CSI 300 paused a two-day gain fueled by reports that the Donald Trump administration is considering gradual tariff hikes.
Employment in Australia and a rate decision in South Korea will be the key data points to watch out in the Asia Pacific region.
The easing of consumer prices in the US buoyed the sentiment across globe. The so-called US core consumer price index — which excludes food and energy costs — increased 0.2% in December, marking the first stepdown in the rate in six months.
Swap traders are back to fully pricing in a rate cut by July, according to Bloomberg. Treasuries rallied in Wednesday's session to push the 10-year yields 14 basis points lower.
The rally in Wall Street erased their losses for 2025 with the S&P 500 seeing its biggest gain since the aftermath of the US election. The S&P 500 and the Dow Jones Industrial Average rose 1.83% and 1.65%, respectively. The tech-heavy Nasdaq Composite advanced 2.45%.
Even risk assets like the Bitcoin gained as data showed that consumer prices eased. The largest cryptocurrency traded above the $100,000 mark. The dollar index — which tracks the greenback's performance against a basket of 10 leading global currencies — was 0.07% down at 109.01.
On Thursday, the European Central Bank will release its meeting minutes while US data to be released includes initial jobless claims and retail sales.
Crude oil prices gained after reports that Israel and Hamas agreed to a ceasefire deal, bringing at least a temporary halt to the war in Gaza. The Brent crude was trading 0.46% higher at $82.41 a barrel as of 6:50 a.m. IST, and the West Texas Intermediate was up 0.45% at $80.40.
Money Market
The Indian rupee ended stronger as it strengthened by 28 paise to close at 86.36 against the US dollar.
The domestic currency had gained 15 paise to open at 86.49 against the US dollar on Wednesday, after closing at 86.64 on Tuesday. This marks a brief recovery for the rupee, which had recently been on a downward trend, hitting an all-time low of 86.6 against the dollar. However, this decline has been gradual compared to other global currencies.
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