The NSE Nifty 50 finds immediate resistance at 24,000-24,100 zone after the Gift Nifty surged over 1% on indicating a strong opening on Wednesday, above the 24,000 mark, despite main indices ending in the red on Monday, according to Gaurav Udani, founder of ThincRedBlu Securities.
"Technically, the 23,500-23,600 zone remains a crucial support area, which has once again held firm. On the upside, 24,000-24,100 will act as immediate resistance, and the index needs to reclaim this zone for a stronger recovery," Udani said.
The Nifty index on Monday's session has formed a bullish candle with a lower high and a lower low as it opened gap down but managed to recover around 300 points from the day's low highlighting buying demand at lower levels around the 20 days extended moving average, according to Baja Broking's market research.
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"Index sustaining above the same will keep the current pullback trend intact. While a breach below 52,500 will derail the positive momentum. On the higher side only a follow through strength above 56,200 will open further upside towards 57,300 and 58,000 levels over the coming sessions being the 61.8% retracement of the recent decline 61,764-49,955," Bajaj Broking said.
Traders should remain cautious, avoid aggressive positions, and focus on reacting to key levels as the market continues to search for direction according to Udani.
Bank Nifty
The Bank Nifty will see the 55,900-56,000 zone as a key resistance area, according to Sudeep Shah, head of technical and derivatives research at SBI Securities.
"A sustained move above 56,000 could extend the pullback rally towards 56500, followed by 57200 in the short term. On the downside, the 55,100-55,000 zone will remain a crucial support for the index," Shah said.
On the higher side only a follow through strength above 56,200 will open further upside towards 57,300 and 58,000 levels over the coming sessions being the 61.8% retracement of the recent decline 61,764-49,955, according to Bajaj Broking.
Gift Nifty
GIFT Nifty is up 0.44% at 24,106, having surged over 105 points or over 1.4% earlier due to easing crude prices and improved global sentiment. This indicates a potentially strong opening for the Nifty 50, possibly reclaiming the 24,000 mark after Monday's decline.
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Market Recap
Indian equity benchmark - NSE Nifty 50 - wiped out most of Friday's gain amid F&O expiry and weak global cues due to a sell-off triggered by the US blockade announcement in the Strait of Hormuz.
The 50-stock index declined nearly 1% to settle above 23,800. On Friday, the benchmark index had closed at 24,050.60 on Friday. Meanwhile, the BSE Sensex closed over 700 points lower or 0.97% to end near 77,000.
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