The Nifty 50 snapped a four-session losing streak on Wednesday, but the recovery remained tentative as the index failed to hold above key resistance levels amid pressure from rising crude oil prices, weakness in banking stocks and a record low in the rupee.
The index swung in a wide 320-point range during the session, higher than its 10-day average daily range of 266 points. Nifty opened lower and fell to an intraday low of 23,262.55 in the first hour of trade before buying at lower levels lifted the index through the session.
The index moved close to the 23,600 mark during the day, but profit booking in the latter half capped gains. Weakness in financial stocks also weighed on sentiment, forcing Nifty to pare gains from the day's high. The index closed up 33.05 points, or 0.14%, at 23,412.60.
Market breadth within the Nifty 50 remained evenly balanced between gainers and losers. Broader markets outperformed the benchmark, with the Nifty Midcap 100 rising 0.77% and the Nifty Smallcap 100 gaining 0.31%. The Nifty Metal index climbed more than 3%, marking its sharpest single-session rise in more than a year and hitting a fresh record high.
Trend Remains Weak
On the daily chart, Nifty formed a green candle with shadows on both sides, reflecting sharp intraday movement. The index, however, continued to post a lower high and lower low compared with the previous session. This marked the fourth straight session of the same pattern, indicating that the short-term trend remains weak.
The index had earlier needed to sustain above 23,500 to reopen the possibility of a move towards 23,800. While Nifty briefly crossed the 23,500 level during intraday trade, it failed to hold above it by the close, making the rebound less convincing.
Nifty ended the session near the 50% Fibonacci retracement level of the recent move from the April low to the April high. The index, however, continues to trade below key moving averages, suggesting that the short-term structure has not yet turned positive.
Levels For May 14
Since the index had earlier moved outside the Bollinger Bands, consolidation or sideways movement over the next few sessions remains possible.
On the hourly chart, the MACD generated a bullish signal, although it remains below the zero line. The hourly RSI is also attempting to recover from oversold territory, indicating signs of a short-term bounce.
A close above Wednesday's high of 23,583 may help pause the ongoing weakness. If the index sustains above that level, it could move towards filling the May 12 gap zone between 23,757 and 23,799. Beyond that, the 50-day moving average near 23,872 is likely to act as resistance. A sustained move above the 50-DMA may support a pullback towards the 24,500 mark.
On the downside, support is placed in the 23,123-23,154 zone. The range includes the 61.8% Fibonacci retracement level of the current upmove, the measured target of the range breakdown and the lower end of the April 8 gap area, making it an important support zone for the coming sessions.
Hindustan Copper Breakout
Shares of Hindustan Copper remained in focus after the stock broke out of a horizontal trendline pattern on Wednesday ahead of its quarterly earnings announcement.
The stock had faced resistance near the Rs 592 level since February. In the latest session, it closed above that zone, signalling a breakout above resistance.
The move came with strong trading volumes. Total traded quantity on the NSE stood at 1.82 crore shares, more than double the 30-day average volume of 87 lakh shares, indicating higher participation in the ongoing trend.
On the weekly chart, the stock recently found support near its 20-week moving average before rebounding. The stock is now trading above its 20-DMA, 50-DMA, 100-DMA and 200-DMA.
The Bollinger Bands have started widening, indicating improving momentum. The 14-period daily RSI has moved above the 60 mark after rebounding from its nine-period average, while the daily MACD has generated a bullish crossover.
The company is scheduled to report its Q4 FY26 and FY26 results on May 15, 2026. Sustaining above the Rs 597-598 zone will remain important for the stock. If it holds above that range, the stock may move towards Rs 630-654 in the medium term. A stop loss for long positions can be placed near Rs 557.
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