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NSE Nifty 50 faces resistance at 25,200–25,250 after a bullish market close, according to analysts
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Bank Nifty to consolidate between 56,500-55,500 before next upward move, Bajaj Broking said
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The rupee closed flat at 88.79 against the US dollar on Wednesday
The NSE Nifty 50 faces immediate resistance at the 25,200–25,250 levels after the markets ended on a bullish note, reversing the last session's loss, according to analysts.
A bullish candle on daily charts and a reversal formation on intraday charts indicate a further uptrend from the current levels. As long as the market is trading above 25,000, the uptrend is likely to continue, according to Shrikant Chouhan, head of equity research at Kotak Securities. "For the bulls, 25,200/82200 and 25,250/82300 would be the immediate resistance zones."
A move above 25,250 on the higher side would open further upside towards 25,400–25,500 levels in the coming weeks, according to Bajaj Broking Research. "Failure to do so will lead to consolidation in the range of 25,250-24,900," analysts at the research firm said.
Bajaj Broking identified the immediate support at 24,800-24,900 levels, being the confluence of the 20-day and 50-day extended moving average and the 61.8% retracement of the last up move.
Bank Nifty
Bank Nifty formed a bull candle, which remained enclosed inside the previous session price range, according to Bajaj Broking Research. It signalled consolidation for the last two sessions after more than 2,300 points up move in the preceding six sessions.
"Going ahead, the index is likely to consolidate in the range of 56,500-55,500, thus forming a base for the next leg of up move," Bajaj Broking said.
On the higher side, a move above 56550 would open further upside towards the all-time high of 57,300-57,600 in the coming weeks, the firm stated.
"On the downside, support is placed at 55,500-55,000 levels being the confluence of the 20- and 50-days extended moving average and the 61.8% retracement of the last up move (54,227-56,502)," Bajaj Broking said,
It saw the bias as remaining positive and said that dips should be used as a buying opportunity.
Market Recap
The benchmark indices slightly underperformed in comparison to the broader market indices. The Nifty 50 index closed near 25,200 and all sectoral indices gained in trade.
Nifty Metal gained over 2% in trade, emerging as the best performing sector for the day. JSW Steel Ltd. and Tata Steel Ltd. also gained the most in Nifty.
Currency Update
The rupee closed flat at 88.79 against the US dollar. It closed at 88.79 a dollar on Wednesday.
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