The Nifty 50 closed higher for a fourth consecutive session on Wednesday, with easing volatility and improving momentum indicators supporting the near-term trend. However, analysts said the index must decisively break above the 24,090-24,126 zone to confirm a stronger move higher.
The Nifty 50 ended Wednesday's session up 96.55 points, or 0.40%, at 24,085.70 after recovering from early weakness. The index opened above the 24,000 mark before profit booking pushed it to an intraday low of 23,969.70 during the first hour of trade. It later regained ground and traded in a narrow range through the remainder of the session.
A decline in market volatility added support to sentiment. India VIX fell towards the 13.2 level and slipped below levels seen before the start of the US-Iran conflict, suggesting that investors' perception of risk has eased.
Nifty Near Crucial Resistance Zone
Wednesday's trading session resulted in a small bullish candle with shadows on either side, indicating range-bound movement with a positive bias.
The Nifty is now approaching an important resistance area around 24,100. The zone coincides with the previous swing high recorded on May 26 and the gap created on May 11, 2026. The index also closed above the 61.8% retracement level of the recent decline, signalling that it has overcome a key technical hurdle.
The benchmark is currently trading 1.17% above its 50-day moving average. Short-term moving averages, including the 8-day exponential moving average, 20-day moving average and 50-day moving average, are aligned in an upward trajectory.
RSI Signals Improving Momentum
Momentum indicators have strengthened in recent sessions.
Bollinger Bands indicate expanding price action, suggesting the index may be emerging from its earlier consolidation phase. The moving average convergence divergence, or MACD, remains close to the zero line, while the histogram points to improving momentum.
More notably, the 14-period daily relative strength index, or RSI, has moved above the 60 mark for the first time in six months. The development points to strengthening internal momentum.
However, analysts said the broader market structure would become more convincing only if the Nifty closes above the 24,090-24,126 resistance band.
Key Levels To Watch Today
A sustained move above 24,090-24,126 could extend the rally towards 24,232-24,340.
On the downside, Wednesday's low of 23,970 is expected to provide immediate support. A more significant support zone lies between 23,645 and 23,817, corresponding with Monday's gap area. The region also overlaps with the 50-day moving average and the 8-day exponential moving average.
As long as the Nifty remains above this support area, the near-term bias is likely to stay positive.
Stock To Watch: Arvind Fashions
Arvind Fashions has broken out of a one-month consolidation phase that had formed a triangular pattern, indicating a possible continuation of its uptrend and presenting a fresh technical setup for traders.
The stock is trading above its key moving averages, including the 20-day, 50-day, 100-day and 200-day averages.
The 14-period RSI has climbed above 60 and formed a fresh swing high, indicating improving momentum. The MACD has also registered a bullish crossover, reinforcing the positive setup.
To maintain the breakout structure, the stock needs to hold above the Rs 487-Rs 489 zone. If it sustains above these levels, it could move towards Rs 530-Rs 550 in the coming sessions. A stop loss may be placed at Rs 454.
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